This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

4 Stocks Set to Soar on Bullish Earnings

OCZ Technology Group

Content on this page requires a newer version of Adobe Flash Player.

Get Adobe Flash player

One earnings short-squeeze play is computer storage device maker OCZ Technology Group (OCZ), which is set to release numbers on Wednesday after the market close. Wall Street analysts, on average, expect OCZ Technology Group to report revenue of $119.69 million on a loss of 15 cents per share.

The current short interest as a percentage of the float for OCZ Technology Group is extremely high at 41.4%. That means that out of the 64.78 million shares in the tradable float, 26.85 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 4.5%, or by about 1.16 million shares.

>>3 Tech Stocks Hedge Funds Are Buying

From a technical perspective, OCZ is currently trading well below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending hard from late July, with shares plunging from $7.67 to its recent low of $3.03 a share. During that downtrend, shares of OCZ have been consistently making lower highs and lower lows, which is bearish technical price action. That said, the stock has now moved into oversold territory, since its current relative strength index reading is now below 30. Oversold can always get more oversold, but we can also watch for a bounce here in OCZ off earnings.

If you're bullish on OCZ, then I would wait until after its report and look for long-biased trades if this stock can manage to hold its trend above its recent low at $3.03 a share with strong upside volume flows. Look for volume on that move that hits near or above its three-month average action of 4.7 million shares. If OCZ can hold that level and start to uptrend with volume, then this stock could possibly hit $4.50 to its 50-day moving average of $5.10 a share post-earnings.

I would avoid OCZ or look for short-biased trades if after earnings it fails to hold above $3.03 a share. If we get that action, then OCZ will setup to trend lower and take out its 52-week low at $3.03 a share, which is bearish technical price action.

4 of 5

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,113.54 +61.81 0.36%
S&P 500 1,983.53 +9.90 0.50%
NASDAQ 4,456.0160 +31.3120 0.71%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs