One of the stocks that made a surprising upwards move on Tuesday was that of Exela Technologies (NASDAQ:XELA) and the stock has continued in the same vein in premarket trading this morning.

Yesterday, the stock had soared by as much as 60%, and this morning, it has rallied by 20% in premarket trading as investors continued to pile on to it. The latest rally in the stock must be a welcome move for many investors who have seen the stock stuck in consolidation mode for many weeks. More importantly, the Exela stock has a track record of big moves, having managed to hit a peak of $7.82 a share in March. However, since then the stock corrected sharply.

One of the major reasons behind the latest rally in the stock is the fact that it seems that Exela has been identified as a possible short squeeze candidate by many retail voters. The numbers do make sense as well. At this point in time, the stock has a short volume ration of 25% and the considerably low price is another reason why many might feel confident enough to work on a short squeeze.

There have been many such moves on penny stocks this year and it would not come as a major surprise if it happens with the Exela stock. However, it should not be forgotten that on Tuesday, the company had also announced that its robotic process automation platform EON had been rolled out by a pretty large health insurance company.