California Resources (CRC) continues to trade below its short-term (50-day) moving average despite its recent rally. CRC was trading 6.1% below its 50-day simple moving average and 36.6% above its 200-day simple moving average on August 24.
Further gains in crude oil and natural gas prices could push CRC above its 50-day simple moving average, resulting in a bullish sentiment.
Short interest in California Resources was 7.6 million shares on August 24. At the same time, the company’s short interest as a percentage of its float ratio was 17.11%, lower than its 30-day average of 18.84%. Moreover, it was below the one-year average of 28.3%.
This fall could be positive for CRC. A decrease in the stock’s short interest despite its recent gains indicates that the market expects it to rise.