If you're in the bull camp on SZYM, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance at $8.18 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 346,990 shares. If we get that move, then look for SZYM to possibly bounce back towards its 50-day moving average of $10.26 a share, or possibly even its 200-day moving average of $11.91 a share.
I would simply avoid SZYM or look for short-biased trades if after earnings it fails to trigger that breakout, and then moves back below some major near-term support at $7.29 a share with high volume. If we get that move, then SZYM will enter all-time low territory, which is bearish technical price action.
To see more potential earnings short squeeze plays, check out the Earnings Short Squeeze Plays portfolio on Stockpickr.
-- Written by Roberto Pedone in Winderemere, Fla.
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