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One earnings short-squeeze candidate in the regional banking complex is
Independent Bank(INDB - Get Report), 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.
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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.