5 High Short Interest Stocks With Breakout Potential

 TrendSpotTeam
 
  TrendSpotTeam
 
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Finding new investment opportunities based on Market Sentiment and Indicators. Manage portfolio risk with leading indicator of volatility See what influential analysts and investors are saying about stocks in your watchlist
 

•  28 Jul 2025
 

•   AFRM  
   
  +2.46%
•   CLSK  
   
  -3.33%
•   KTOS  
   
  -0.88%
•   RKLB  
   
  +4.94%
•   WBD  
   
  -3.87%

$KTOS – Kratos Defense & Security might be the sleeper pick with the loudest signal. Short interest has plunged 27.38%, one of the sharpest declines in this group, suggesting bears are fleeing. The stock is trading at $59.36—well above its 200-day MA—and has been powering higher in a clear uptrend. With RSI at 71.25 and a beta over 1.0, momentum is clearly on its side. Volume has remained elevated, and any breakout above $61.43 (its 52-week high) could attract even more bullish traders. Kratos combines short-covering pressure with breakout energy, exactly what active traders want.

$WBD – Warner Bros. Discovery is heating up again. Short interest fell 18.59%, and the stock is trending higher with strong volume behind it. At $13.70, WBD is just under its 52-week high, and with an RSI of 83.64, it’s showing strong bullish conviction. Despite ongoing restructuring and media headwinds, market participants are betting on a rebound—and shorts are getting squeezed. If this uptrend holds, WBD could rip through resistance and surprise to the upside.

$RKLB – Rocket Lab USA isn’t just a cool name—it’s a compelling short interest play. The stock is in an uptrend with a 13.51% drop in short float and bullish technicals across the board. RSI is at 59.96, signaling room to run, and the price has cleared key moving averages. Volume remains strong, and traders love a story stock with momentum—especially in the space/tech sector. With a beta of 2.15, RKLB can move fast, and the recent shift in short sentiment makes it one to watch closely.

$AFRM – Affirm Holdings has seen short interest increase by 4.31%, but the bulls are pushing right through it. Trading at $67.51 and riding an uptrend, AFRM is showing resilience. RSI at 56.11 suggests more room to climb.
Why is it compelling? It’s a classic setup for a possible short trap. As bears pile in but the stock trends higher, it creates conditions for an aggressive squeeze. Affirm has volatility and attention—two ingredients for near-term fireworks.

$CLSK – Cleanspark Inc. rounds out the list with a short interest decline of 8.02% and a strong uptrend. At $12.03 and climbing, the stock is riding momentum with RSI at 53.47 and approaching its 20-day MA of $11.49.
CLSK is also known for its crypto exposure, which adds another layer of volatility. As short interest drops and retail traders pile in, this name could move quickly. It’s not the cleanest chart, but the setup is promising if momentum picks up again.