IREN Ltd (NASDAQ:IREN) stock is up 0.4% at $35.34 this morning, following reports that the data center operator signed a multi-year agreement to provide AI cloud computing services to Anthropic. According to The Information, the deal would give Anthropic access to additional high-performance computing infrastructure as the AI developer expands its operations.
IREN is looking to snap a three-day losing streak, after shedding 15.7% last week. The shares are down 17.8% over the past month and have struggled to regain momentum since their early-June peak near $70. The $35 level could provide a floor for the stock, having contained several pullbacks in recent months, while the $50 level looms overhead as potential resistance after rejecting rallies in September and August.
A short squeeze could help IREN extend today's gains. Short interest accounts for a hefty 21.8% of the equity's available float, and it would take nearly two days to buy back these bearish bets, at the stock's average pace of trading. Furthermore, the stock's 14-day Relative Strength Index (RSI) sits at just 16.9, deep in "oversold" territory, suggesting a short-term bounce may have been overdue.
Meanwhile, options traders have been overwhelmingly bullish. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and Nasdaq OMX PHLX (PHLX), IREN's 50-day call/put volume ratio of 3.98 ranks higher than all other readings in its annual range.
