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Another earnings short-squeeze trade in the oil and gas complex is
Endeavour (END), which is set to release numbers on Wednesday before the market open. This is an independent oil and gas company engaged in the exploration, development and acquisition of energy reserves in the U.S. and U.K. Wall Street analysts, on average, expect Endeavour to report revenue of $16.88 million on a loss of 28 cents per share.
If you're looking for a stock that's trading within range of triggering a big breakout post-earnings, then make sure to check out shares of Endeavour. This stock is well off its 52-week high of $16.43 a share, but its trading right below a key technical overhead resistance level as we approach earnings.
The current short interest as a percentage of the float for Endeavour is extremely high at 19.9%. That means that out of the 23.50 million shares in the tradable float, 5.86 million are sold short by the bears. This is a stock with a very high short interest and low float, so if the company can deliver strong earnings and bullish forward guidance it could easily see a massive short-squeeze.
From a technical perspective, END is currently trading above its 50-day moving average, which is bullish. This stock recently formed a perfect triple bottom at around $5.80 to $5.98 a share, and since then has run up to its current price of $11.85. This sharp run-up has now put END within range of breaking out post-earnings.
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If you're bullish on END, I would look for long biased trades after its report if the stock manages to break out above some near-term overhead
resistance at $12.18 a share (or above its daily high Tuesday if it's greater) with high-volume. Look for volume that's tracking in close to or above its three-month average volume of 528,336 shares. If we get that action, I would then add to any long positions in END if it takes out $13 with volume. Target a run back toward $14 to $16.43 if the bulls gain full control of this stock post-earnings.
I would simply avoid END or look for shortbiased trades if the stock fails to break out after earnings, and then drops below $11.05 to $10.77 a share with volume. I would target a drop back below its 50-day moving average of $9.68 a share if the bears sell this off hard post-earnings.
Endeavour shows up on a recent list of "
Stocks With Big Insider Buying."