DELAFIELD, Wis. (Stockpickr) -- Another week is coming to an end on Wall Street, and once again we saw a monster short squeeze that put the bears on the run.

It wasn't Green Mountain Coffee Roasters (GMCR) this week, although that stock continues to march higher and frustrate the bears. This time it was Tesla Motors (TSLA), which exploded higher on Thursday off a bullish earnings report squeezing the bears into new all-time-high territory.

Another name that blasted higher and thumped the bears this week was technology player Neonode (NEON), which I flagged in Feb. 14's "5 Hated Stocks That Could Get Squeezed Much Higher" at around $6.60 per share. I mentioned in that piece that shares of NEON sported a very high short interest of 26.7% with a relatively low float. This stock ripped higher on Thursday by over 13% to its intraday high of $7.61 a share as the bears scrambled to get out of the way. Shares of NEON might not be down squeezing the shorts here, so look for this stock to take out some past overhead resistance at $7.94 with high volume for another run.

>>5 Stocks Under $10 Ready to Explode

Since we continue to remain in an uptrending equity market, I think it's an excellent time to search for stocks that are favorite targets of the short-sellers. These could be the stocks that are setting up to explode higher and crush the bears just like we've seen recently with NEON, TSLA and GMCR. Take it from me, hedge funds are doing the same thing and scanning the market for stocks with lots of shorts, since they know these could be the names that help them make their quarters.

With that in mind, here's a look at five stocks that could be preparing for some epic squeezes soon.

WPCS International


One technology player that could be preparing for a big short-squeeze is WPCS International (WPCS), which provides design-build engineering services for communications infrastructure worldwide. This stock has been hit hard by the bears over the last six months, with shares down sharply by 48%.

The current short interest as a percentage of the float for WPCS International is ridiculously high at 82.8%. That means that out of the 1.41 million shares in the tradable float, 1.17 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 45%, or by about 362,726 shares. This is an ungodly short interest on a stock with one of the smallest floats you'll ever find. If a short-squeeze does materialize here, then this stock has all the makings of an explosive move candidate.

If you take a glance at the chart for WPCS International, you'll notice that this stock recently formed a double bottom chart pattern at $1.32 to $1.35 a share. Following that bottom, shares of WPCS have started to spike sharply higher and move within range of triggering a major breakout trade above some key near-term overhead resistance levels.

Traders should now look for long-biased trades in WPCS if it manages to break out above some near-term overhead resistance levels at $1.92 a share to its 50-day moving average of $1.95 share with strong volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 1.99 million shares. If that breakout materializes soon, then WPCS could easily skyrocket sharply higher back towards its next major overhead resistance levels at $2.85 to its 200-day at $2.87 a share, or even $3.40 a share.

Traders can look to buy WPCS off any weakness to anticipate that breakout and simply use a stop that sits right below some key near-term support levels at $1.55 to $1.50 a share. One can also buy WPCS off strength once it starts to clear those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

Criteo


Another stock that could be setting up to annihilate the shorts is Criteo (CRTO), which enables e-commerce companies to leverage large volumes of granular data to engage and convert their customers. This stock is off to a hot start in 2014, with shares up nicely by 25%.

The current short interest as a percentage of the float for Criteo SA is very high at 14.4%. That means that out of the 11.04 million shares in the tradable float, 1.59 million shares are sold short by the bears. This is a solid short interest on a stock with a very low tradable float. This is the exact ingredients that can produce a monster short-squeeze once the bulls gain full control of shares of CRTO.

If you take a look at the chart for Criteo SA, you'll see that this stock has been uptrending strong for the last few weeks, with shares soaring higher from its low of $33.17 to its intraday high of $43.05 a share. During that uptrend, shares of CRTO have been consistently making higher lows and higher highs, which is bullish technical price action. This spike on Thursday is now quickly pushing shares of CRTO within range of triggering a major breakout trade that could squeeze this stock into new all-time-high territory.

Traders should now look for long-biased trades in CRTO if it manages to break out above Thursday's intraday high of $43.05 and then once it clears its all-time high of $45 a share with strong volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average volume of 159,751 shares. If that breakout comes soon, then CRTO will set up to enter new all-time-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $50 to $55 a share, or even $60 a share.

Traders can look to buy CRTO off any weakness to anticipate that breakout and simply use a stop that sits right around some near-term support levels at $40 to $39 a share. One could also buy CRTO off strength once it starts to take out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

ParkerVision


One technology player that could be getting ready to put the hurt on the shorts is ParkerVision (PRKR), which designs, develops and markets proprietary radio frequency technologies and products for use in semiconductor circuits for wireless communication products in the U.S. This stock has been in play with the bulls over the last three months, with shares up strongly by 29%.

The current short interest as a percentage of the float for ParkerVision is extremely high at 26.2%. That means that out of the 83.46 million shares in the tradable float, 21.93 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 5.1%, or by around 1.05 million shares. The way this chart is setting up technically, I think the bears are pressing their bets and they could potentially be in a world of trouble soon.

If you take a look at the chart for ParkerVision, you'll notice that this equity has been consolidating and trending range bound for the last two months and change, with shares moving between $4 on the downside and $5.30 on the upside. Shares of PRKR have started to spike higher back above its 50-day moving average of $4.65 a share and it's now quickly moving within range of triggering a major breakout trade above the upper-end of its recent sideways trading chart pattern.

Traders should now look for long-biased trades in PRKR if it manages to break out above some near-term overhead resistance levels at $4.93 to $5.12 a share and then above more key resistance at $5.30 share. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 736,436 shares. If that breakout comes to fruition soon, then PRKR will set up for an explosive move higher into its previous gap-down-day zone from last October that started near $7.50 a share. This stock could easily tag $6 to $7 a share quickly if the squeeze is on.

Traders can look to buy PRKR off any weakness to anticipate that breakout and simply use a stop that sits right below its 200-day moving average of $4.14 a share, or just below that key support level at $4 a share. One can also buy PRKR off strength once it starts to bust above those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

SunPower


Another short-squeeze candidate that looks to be setting up to do some damage to the bears is SunPower (SPWR), which designs, manufactures and delivers solar systems to residential, commercial, and utility customers. This stock has been on fire over the last six months, with shares up a whopping 59%.

The current short interest as a percentage of the float for SunPower is extremely high at 34.7%. That means that out of the 42.12 million shares in the tradable float, 14.66 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 8.1%, or by about 1.09 million shares. The short could be in trouble here, since they're pressing their bets on a stock that is very close to enter new 52-week-high territory.

If you look at the chart for SunPower, you'll notice that this stock has been trending range bound over the last three months and change, with shares moving between $27.15 on the downside and $36.25 on the upside. Shares of SPWR just recently crossed back above is 50-day moving average with strong upside volume. That move is quickly pushing shares of SPWR within range of triggering a major breakout trade above the upper-end of its recent sideways trending chart pattern.

Traders should now look for long-biased trades in SPWR if it manages to break out above some near-term overhead resistance levels at $34.70 to its 52-week high at $36.25 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average volume of 2.71 million shares. If that breakout triggers soon, then SPWR will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $40 to $45 a share, or even $50 a share.

Traders can look to buy SPWR off any weakness to anticipate that breakout and simply use a stop that sits right below its 50-day moving average of $31.13 a share. One can also buy SPWR off strength once it starts to take out those breakout levels with volume and then simply use a stop that sits a comfortable percentage from your entry point.

J2 Global


My final short-squeeze trading idea is J2 Global (JCOM), which provides services to businesses and consumers through the Internet worldwide. This stock is up modestly over the last three months, with shares higher by just over 7%.

The current short interest as a percentage of the float for J2 Global is extremely high at 22%. That means that out of the 43.12 million shares in the tradable float, 9.68 million shares are sold short by the bears. This is a large short interest, so traders should keep an eye on the price action of JCOM going forward in case a tradable short-squeeze starts to develop.

If you look at the chart for J2 Global, you'll notice that this stock recently gapped up sharply higher from just above $46 to its high of $51.17 with monster upside volume. Shares of JCOM have pulled back a bit of that $51.17 high, but this stock is still trending well within range of triggering a big breakout trade above some near-term overhead resistance.

Traders should now look for long-biased trades in JCOM if it manages to break out above some near-term overhead resistance at $50.20 to $51.71 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average volume of 329,146 shares. If that breakout materializes soon, then JCOM will set up to re-test or possibly take out its 52-week high a $56.24 a share. Any high-volume move above that level will then give JCOM a chance to tag $60 to $65 a share.

Traders can look to buy JCOM off any weakness to anticipate that breakout and simply use a stop that sits just below some near-term support at $48 a share or right around its 200-day moving average of $46.63 a share. One can also buy JCOM off strength once it starts to blast above those breakout levels with volume and then simply use a stop that sits a conformable percentage from your entry point.

To see more stocks that could be getting ready to squeeze the bears, check out the Explosive Short-Squeeze Stock Plays portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.


RELATED LINKS:







Follow Stockpickr on Twitter and become a fan on Facebook.

At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including

CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.