If you're in the bull camp on RAVN, then I would wait until after its report and look for long-biased trades as long as this stock is trending above its recent low of $25.11 a share with strong upside volume flows. I would consider any upside volume day that registers near or above its three-month average action of 128,316 shares as bullish. If we get that action, then look for RAVN to re-test or possibly take out its 50-day moving average of $28.57 a share. I would simply avoid RAVN or look for short-biased trades if after earnings it fails to trigger that move, and then moves back below some key support levels at $25.11 to $24.84 a share with heavy volume. If we get that action, then RAVN will set up to re-test or possibly take out its next major support levels at $22.47 to $21.33 a share post-earnings.
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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