Katapult Holdings: RSI Overbought, KDJ Death Cross on 15-minute chart.

Katapult Holdings' 15-minute chart has triggered an RSI Overbought signal and a KDJ Death Cross at 07/11/2025 12:30. This indicates that the stock price has risen too quickly and is now unsupported by fundamental factors, suggesting a shift in momentum towards a downward trend with potential for further decline.

Katapult Holdings (KPLT) has been in the spotlight recently due to a combination of short interest developments and technical indicators that suggest a bearish sentiment. As of December 31, 2024, the short interest in KPLT stands at 81,800 shares, representing 3.25% of the float [1]. This marks a decrease of 1.80% from the previous month, indicating a positive shift in investor sentiment. However, the short interest ratio, also known as the "days to cover" ratio, is 2.5, which suggests that it would take approximately 2.5 days of average trading volume to cover all short positions [1].

The technical indicators have also raised concerns. On July 11, 2025, at 12:30, KPLT's 15-minute chart triggered an RSI Overbought signal and a KDJ Death Cross. These signals suggest that the stock price has risen too quickly and is now unsupported by fundamental factors, indicating a potential shift in momentum towards a downward trend [2].

In comparison to its competitors in the business services industry, KPLT's short interest is relatively low, but it is still above the 10% threshold, which indicates some pessimism among investors [1]. For instance, DLH Holdings Corp. has a short interest of 1.84%, while Phunware, Inc. has a short interest of 10.18% [1].

The short selling strategy involves borrowing shares, selling them, and buying them back later at a lower price. If the stock price declines, short sellers can profit from the difference between the selling and buying prices. However, if the stock price appreciates, short sellers may face significant losses, a situation known as a "short squeeze" [1].

Katapult's short interest is typically reported by NASDAQ twice per month. The most recent reporting period available is December 31, 2024 [1].

In conclusion, while the decrease in short interest suggests a positive shift in investor sentiment, the technical indicators and the relatively high short interest ratio compared to the industry average suggest that KPLT may face challenges in the near future. Investors should closely monitor the stock's performance and consider the potential risks associated with short selling.

References:
[1] https://www.marketbeat.com/stocks/NASDAQ/KPLT/short-interest/
[2] MarketBeat Newsletter (July 2025)