One potential earnings short-squeeze play in the software and programming complex is OPNET Technologies (OPNT), which is set to release numbers on Monday after the market close. This company is a provider of application and network performance management solutions. Wall Street analysts, on average, expect OPNET Technologies to report revenue of $44.79 million on earnings of 21 cents per share.OPNET is another severely beaten-down heavily-shorted stock. So far in 2012, it has been destroyed by the sellers with shares falling over 35%. Traders should now keep an eye on this stock for a potential of short-squeeze and rebound trade off these oversold conditions post-earnings. The current short interest as a percentage of the float for OPNET Technologies is notable at 8.3%. That means that out of the 14.92 million shares in the tradable float, 1.23 million shares are sold short by the bears. From a technical perspective, OPNT is currently trading below both its 50-day and 200-day moving averages, which is bearish. This stock has dropped hard from its February high of $38.47 to a recent low of $22.10 a share. Since that big-time selloff, OPNT has now started to trend sideways between $24 and $22 a share. A move outside of that sideways trading pattern post-earnings should set this stock up for its next big trend. If you're a bull on OPNT, then I would wait until after they report and look for long-biased trades if this stock can break out above $24 a share with high-volume. Look for volume on that move that registers close to or above its three-month average action of 238,573 shares. If we get that action, then I would add to any long positions in OPNT if it takes out its 50-day moving average of $26.16 a share with volume. I would avoid OPNT or look for short-biased trades if the stock fails to trigger that move, and then drops below that major near-term support at $22 a share with high-volume. Target a move toward its next significant support zone at $17.50 a share if the bears gain full control of this stock post-earnings.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts