One earnings short-squeeze candidate in the regional banking complex is Independent Bank (INDB), which is set to release numbers on Thursday after the market close. Wall Street analysts, on average, expect Independent Bank to report revenue of $55.63 million on earnings of 50 cents per share.
If you're looking for a banking stock that's trending very strong heading into its quarter, then make sure to check out shares of Independent Bank. This stock is currently trading just a few points off its 52-week high of $29.99 as we approach its earnings report.The current short interest as a percentage of the float for Independent Bank is rather high at 13.2%. That means that out of the 20.49 million shares in the tradable float, 2.69 million are sold short by the bears. This stock has a low float and a pretty decent short interest. Any bullish earnings news could easily spark a sizeable short-squeeze. >>5 Bank Stocks Worth a Second Look From a technical perspective, INDB is currently trading above its 200-day moving average and just below its 50-day moving average, which is neutral trendwise. This stock has been trading range bound for the last few months between $26.18 and $29.57 a share. A move outside of that range post-earnings will most likely setup the next big trend for INDB. If you're bullish on INDB, I would look for long-biased trades after they report if this stock manages to move back above its 50-day moving average of $28.03, and break out above some near-term overhead resistance at $29.57 a share with strong volume. Look for volume on that move that's near or above its three-month average action of 57,377 shares. If we get that action, then look for INDB to make a run into the mid-30s. I would simply avoid INDB or look for short biased trades if the stock fails to trigger that breakout, and then drops back below some near-term support at $27.19 with high-volume. Target a drop back towards its 200-day moving average of $25.66 a share or possibly lower if the bears hammer this stock down post-earnings.
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