Navitas Semiconductor Corp (NASDAQ:NVTS) shares are trading lower during Thursday’s premarket session. The move follows a significant rally on Wednesday, where the stock surged over 20%.

Nasdaq futures are down 0.44% while S&P 500 futures have shed 0.45%.

Profit Taking After Rally

The primary driver for Thursday’s decline is profit-taking. Investors are securing gains following an upward trend.

The stock previously found momentum after appointing Gregory Fischer to its board. Fischer is a veteran of Broadcom Inc (NASDAQ:AVGO).

Short Interest Shifts

Short interest in the semiconductor firm recently decreased.

Data shows a drop from 43.80 million to 43.48 million shares. Currently, 25.11% of the company’s float remains sold short.

Dynamics of the Squeeze

At the average daily volume of 22.15 million shares, shorts need 1.96 days to cover.

This high concentration previously linked NVTS to meme basket momentum alongside Beyond Meat Inc (NASDAQ:BYND).

Technical Analysis

Navitas is still holding the upper end of its 52-week range, staying close to the April peak near $18.67, which keeps the longer-term trend pointed up.

The stock is trading 69.1% above its 20-day simple moving average (SMA) and 90.6% above its 100-day SMA.

The relative strength index (RSI), a momentum gauge, is 86.64.

Over the last 12 months, NVTS is up 893.01%.

  • Key Resistance: $18
  • Key Support: $17.50

NVTS Price Action: Navitas Semiconductor shares were down 2.92% at $17.93 during premarket trading on Thursday. The stock is trading near its 52-week high of $18.67, according to Benzinga Pro data.

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