Can Hudson City Bancorp keep climbing after 2Q earnings?

Shares of the regional bank opened on the south side of break even in the wake of this news, though their losses have so far been minimal. HCBK is currently positioned atop all of its 10-unit daily, weekly, and monthly moving averages, but a recent surge on the charts means that it might be due to consolidate some gains. However, if the security can hang onto a perch above its 10-month trendline through the end of July, it would mark the stock's first monthly finish above this level since October 2008.

HCBK's ascent during the past few months suggests that it just might have the technical chops to keep climbing. The equity has cruised consistently higher since late May, despite a simultaneous increase in short interest -- the number of shares sold short is up 31% during the past month, and up nearly 10% during just the most recent reporting period. The stock's ability to rise amid this constant selling pressure hints at deep-seated technical strength.

Additionally, HCBK looks overdue for some kudos from analysts. Zacks reports 10 Hold ratings, compared to just four Buy or better opinions. Plus, the equity's average 12-month price target from brokerage firms is $14.44, representing a fractional discount to Monday's close.

In light of the company's respectable second-quarter results, it's possible that some of the skeptical holdouts on Wall Street could throw in the towel. A capitulation among short sellers or analysts could potentially fuel HCBK higher.

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.