Not So Fast: Short Sellers Eye RIMM's Surge

Research in Motion headquarters in Waterloo, Canada.
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Research in Motion headquarters in Waterloo, Canada.

Since touching a nine-year low in September, shares of Research in Motion have been on a tear, up over 120 percent just ahead of the launch of its new BlackBerry.

Yet just as the stock continues to climb, so has interest in short positions, or investors piling on bets to sell.

At the end of last month, short interest reached a peak of 113.7 million shares, the highest level since January 2004. That would put short interest for the stock at about 22 percent.

The strong performance over the past few months comes on the heels of the much awaited BlackBerry 10 release early next year. Analysts are eager to see if the latest device can help jolt new life into a company most investors left for dead when Apple launched its iPhone.

The stock hit a new metric this week, forming a golden cross -- a bullish indicator that appears when the short-term 50-day moving average crosses above the 200-day moving average.

The last time RIMM had golden cross was back in December 2010, which led to it posting a 13 percent increase in the two months after.

RIM is expected to report quarterly figures Thursday after the bell. The company's earnings could be the judge of which camp is right: the investors currently bidding up its stock, or the short sellers lying in wait for the eventual downturn.