5 Earnings Stocks Poised to Pop

Triangle Petroleum

My first earnings short-squeeze candidate is oil and gas exploration and development player Triangle Petroleum (TPLM), which is set to report its results on Thursday before the market open. Wall Street analysts, on average, expect Triangle Petroleum to report revenue of $3.35 million on a loss of 4 cents per share.

The current short interest as a percentage of the float for Triangle Petroleum is notable at 8.3%. That means that out of the 39.28 million shares in the tradable float, 3.55 million are sold short by the bears. The short-sellers have also been increasing their bets from the last reporting period by 14%, or by about 435,000 shares.

From a technical standpoint, TPLM is currently trading below both its 50-day and 200-day moving averages, which is bearish. For the past two months, this stock has been trading inside of a range, between $4.80 and $6.40 a share. The stock is currently trading near $5.19 a share and it has just broken below its 50-day moving average of $5.24 a share.

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If you're bullish on TPLM, I would look to buy some shares after their report if the stock can manage to hold above that range low of $4.80. I would then add to any long positions once the stock trades above $5.50 on high volume. Look for volume that's close to or above its three-month average volume of 598,703 shares. Target a run back toward that range high of $6.40, and add to any long positions if that level is taken out with volume.

I would avoid TPLM completely if after their earnings report, the stock takes out $4.80 on heavy volume. A big volume move below that support zone should set this stock up to trade back towards $4 a share, or possibly much lower.

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