Hertz Global Holdings (NASDAQ:HTZ) is surging after earnings as heavy short interest and retail chatter fuel a potential short squeeze in the stock — shares are up roughly 50% over the past two days, with 73.85% of the float sold short based on Benzinga Pro data.

The car rental stock is also Friday’s top trending ticker on WallStreetBets, per Swaggy Stocks.

Short Interest Drives Squeeze Potential

Traders have been targeting names like Avis Budget Group (NASDAQ:CAR) and Lucid Group (NASDAQ:LCID), which are also seeing significant short interest.

Avis Budget, for example, has short interest well above 50% of its float, drawing attention from squeeze-chasing traders.

This clustering of short sellers in travel and auto sectors, including Hertz, suggests skepticism around demand strength and capital needs. Elevated short interest in these stocks could lead to rapid covering if any positive catalysts emerge, such as upbeat earnings or macroeconomic data that eases recession fears.

HTZ Technical Analysis

Hertz is currently showing a mixed technical picture, with the price trading significantly above the 20-day simple moving average (SMA) but well below the longer-term averages like the 50-day and 200-day SMAs.

This positioning suggests a short-term bullish sentiment, but the longer-term trend remains bearish, indicating potential volatility ahead.

The RSI is currently at 66.02, which is in neutral territory but close to overbought levels. This suggests that while there is upward momentum, traders should be cautious as a move above 70 could signal a pullback.

In June, Hertz experienced a death cross when the 50-day SMA crossed below the 200-day SMA. This bearish signal typically indicates a longer-term downtrend, reinforcing the need for caution in the current trading environment.

Over the past 12 months, Hertz Global Holdings, Inc’s stock has declined by 59.04%, highlighting a significant longer-term downtrend. This performance underscores the challenges the company has faced and suggests that traders should be wary of potential further declines unless a strong reversal signal emerges.

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