Datchat Inc. (NASDAQ:DATS) and Sphere 3D Corp. (NASDAQ:ANY) have been recent short squeeze candidates. Sphere 3D has a short percentage that's currently 57% of shares available, while Datchat has one of 10%. Both stocks have seen interest from fintwit influencer @MrZackMorris.

At time of publication, Datchat was down 18% at $12.30 and Sphere 3D was up 8% at $7.59.

Datchat Daily Chart Analysis

• Shares attempted to break out of what technical traders call an ascending triangle pattern, but were rejected at the resistance level.
• The stock was rejected at the $15 resistance level before it fell back down toward support. Support may be found near the higher low trendline as this was an area the stock has been able to bounce at in the past.
• The Relative Strength Index (RSI) dipped slightly lower Wednesday and moved down to 58 on the indicator. This shows there is still more buying pressure in the stock than there is selling pressure.

Sphere 3D Daily Chart Analysis

Shares are trading in a similar pattern as Sphere 3D, and look to be attempting to break resistance in what technical traders call an ascending triangle pattern.

The $7.50 mark is where the stock has found resistance in the past. The stock looks to be nearing resistance in the pattern. Support has been found near the higher low trendline in the past.

The stock trades above both the 50-day moving average (green) and the 200-day moving average (blue), indicating the stock is seeing some bullish sentiment.

What’s Next?

Bulls in either of these stocks are looking to see them climb and break above pattern resistance. Bulls would then like to see the stocks consolidate above the resistance for a possible further move higher.

Bears would like to see the stocks start fading lower and be unable to hold above the higher low trendline. If this trendline begins to act as resistance, the stocks could see a strong bearish push