High-flying Goldcorp pulls back after launching $750 million note offering

Judging by a recent jump in short interest, some investors are speculating that GG has run too far, too fast. The number of Goldcorp shares sold short jumped by nearly 8% during the most recent reporting period, and these bearish bets now account for 1% of the equity's available float.

Meanwhile, option players have set their sights on GG's in-the-money June 35 call. This option carries peak front-month open interest of 11,529 contracts; meanwhile, the most popular front-month put option is also the 35 strike, with a comparatively paltry accumulation of 3,341 contracts.

If speculators are honing in on the 35 level, it's likely because this area has been a critical one for the shares. GG was rejected at $35 in late March, but the stock has now closed two consecutive weeks -- plus the month of May -- above this closely watched strike. It's a technical feat last accomplished in mid-2008, and it could indicate that the security's recent rally has legs to run higher.

However, during the short term, additional consolidation is likely. Look for GG's pullback to find a floor just north of $37, which is home to its rising 10-day moving average.

Elizabeth Harrow is an analyst and financial writer in the research department at Schaeffer's Investment Research. She is featured in the video series Schaeffer's Daily Q&A on SchaeffersResearch.com.