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Another potential earnings short-squeeze trade is independent energy player
Kodiak Oil & Gas(KOG), which is set to report results on Tuesday after the market close. This company is focused on the exploration, exploitation, acquisition and production of crude oil and natural gas in the U.S. Wall Street analysts, on average, expect Kodiak Oil & Gas to report revenues of $59.86 million on earnings of 9 cents per share.
This is another strong equity that's trading within range of a big breakout post-earnings. Shares of Kodiak Oil & gas closed Monday at $10.52 a share, which is just 40 cents off its 52-week high of $10.90. The current short interest as a percentage of the float for Kodiak Oil & Gas is pretty high at 11.4%. That means that out of the 199.18 million shares in the tradable float, 28.06 million are sold short by the bears.
technical perspective triggering a big breakout, KOG is currently trading above its 50-day and 200-day moving averages, which is bullish. This stock recently found some big buying support at around $8.77 to $8.79 a share. Since buyers stepped in at those levels, the stock has ripped higher towards its current price of $10.50.
If you're bullish on KOG, I would look for long biased trades after its report if the stock breaks out above $10.90 a share (or its daily high on Tuesday if it's greater) with volume. Look for volume that's tracking in close to or above its three-month average action of 4.2 million shares. If we get that
high-volume breakout, then I would look for a sharp spike higher considerably after earnings.
I would simply avoid KOG or look for short biased trades if this stock fails to breakout after earnings and then drops below $10 a share with heavy volume. If we get that action, then I would target a drop back towards the 50-day moving average of $9.45 a share, or possibly much lower if the bears whack this down post-earnings.
I also featured KOG recently in "
8 Stocks Under $10 Moving Higher."