Shares of QuantumScape Corp. (QS) are having a decent Monday. They're up, which is nice, but the move looks a lot like it's just going along for the ride with the broader market.

The Nasdaq and S&P 500 are both up over 1.5%, so a lot of stocks are green today. QuantumScape is one of them.

Why Cheaper Oil Might Help

There's another factor at play: oil prices are tanking. West Texas Intermediate crude futures plunged more than 10% on Monday to around $87 a barrel. That's a big move.

The catalyst appears to be geopolitical. Reports indicate former President Donald Trump ordered the Pentagon to halt planned strikes on Iranian energy infrastructure for five days, citing "very good and productive" discussions between the U.S. and Iran. When oil gets cheaper, it often gives a little boost to consumer discretionary stocks, including those in the auto sector. So, QuantumScape, as a battery developer for electric vehicles, gets a bit of a tailwind from that.

The Bears Are Still Circling

But don't let the green on your screen fool you. The bears have not gone away. In fact, they've been getting more aggressive. Recent data shows short interest in QuantumScape jumped from 73.44 million to 81.79 million shares. That means nearly 17% of the company's available shares are being bet against.

Based on average trading volume, it would take short sellers almost six full days to buy back all those shares to close their positions. That's a pretty high level of short interest, which can sometimes lead to sharper rallies if the stock starts to move up and shorts get squeezed, but it also shows a lot of skepticism remains in the market.

The Bigger Picture Is Still Red

Here's the thing about today's pop: it's a small bounce in a very big decline. Looking at the charts, QS is trading just 0.8% above its 20-day moving average. That's the short-term good news.

The long-term news is not so good. The stock is still trading a whopping 34.8% below its 100-day moving average. Over the past 12 months, shares are down almost 49%. They're much closer to their 52-week low than their high. So, while the stock is up today, the overall trend has been decisively down.

Some momentum indicators are trying to turn. The Relative Strength Index (RSI) is at 35.90, which is in neutral territory. The MACD is at -0.4067, which is above its signal line of -0.5087—a potential, very early sign of shifting momentum, but far from a confirmed trend change.

For the technicians watching, key resistance to watch is around $7.50, while support sits near $6.50.

The bottom line: QuantumScape shares were up 6.22% at $7.00 on Monday. It's a good day, driven by a rising market and cheaper oil. But the high short interest and the brutal long-term chart are reminders that one day does not make a trend. For investors, it's a short-term pop in a stock that's still searching for a long-term bottom.