Keep an eye on shares of Deckers Outdoor Corporation (DECK) today. This stock carries a relatively heavy level of short interest and is on the move. Here is the weekly chart.

Chart Courtesy of Thomson Financial

The shares peaked at the end of 2007 and then began a strong pullback that lasted until mid-March. There they found a bottom near the 90 level and began to bounce. Based on the chart alone there seems to a be a case made that the uptrend my be resuming. A factor that may exacerbate the move is short interest. As the chart to the right shows, the overall number of shares sold short has risen in recent months. At this point 28% of the stock's float is sold short. (I view anything above 10% as being relatively high.)

The stock is bid up more than 10% in pre-open action after a better-than-expected report. Given the solid fundamental news and the break of the short-term downtrend, this could be a longer-term situation to keep an eye on.