WISH stock price prediction: Can the ContextLogic rally keep going?

The WISH stock price ended Friday’s session lower after failing to clear resistance. So is ContextLogic Inc really a good short-squeeze candidate?

ContextLogic Inc (WISH: NASDAQ) closed the day at $14.04, -$0.35 (-2.43%).

Contextlogic, the parent company of online marketplace Wish.com, is enjoying a purple patch after gaining support from the WallStreetBets Reddit forum. As of today, it is the third most mentioned stock, after Clover Health and GME. It’s 83, mostly positive threads, account for 8.2% of the retail investor subs overall activity.

Is the WISH stock price squeezable?

Firstly, only 18,400,000 of the available 340,700,000 shares have been borrowed against short sales. This is 5.38% of the float, which, although notable, isn’t extremely high.

Secondly, the Days to Cover of 0.4 indicates that those shorts could close their positions in time for lunch today, based on the average daily volume. Considering GME’s Days to Cover was around 6 during the January squeeze, ContextLogic has much less squeeze potential.

ContextLogic price prediction

The 4-hour chart shows a clear, almost horizontal, line of resistance. The trend from the April 29th high aligns with the 9th of June high at $15.00 and Thursday’s $14.69 peak. Just above that, we see the 200-day moving average at $15.28. Therefore, should the WISH stock price close above $15.28, it will have cleared two major resistance levels. This would likely result in an initial extension towards $17.00 and potentially higher.

However, the Relative strength indicator shows signs of rolling over, signaling the bullish momentum is pausing.

Additionally, in my opinion, the short interest is not high enough to make this the next AMC Entertainment or GameStop.

However, its popularity on Reddit cannot be denied, and the self-titled smooth-brained apes have pulled off the impossible more than a few times this year.

Maybe it has nothing to do with the short positions. Maybe they ‘really like the stock’.

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Wish stock price chart (4-hour)

Wish Scock price

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