From a technical perspective, EXPR is currently trending above its 50-day moving average and well below its 200-day moving average, which is neutral trendwise. This stock has been trending sideways for the last two months, with shares moving between $10.47 on the downside and $12.79 on the upside. That sideways pattern followed a big gap down in price in October from $15 to $11.50 a share with high volume. Shares of EXPR are now starting to move into that gap and move back above its 50-day moving average of $12.55 a share.
If you're in the bull camp on EXPR, then I would wait until after its report and look for long-biased trades in this stock as long as its trending above its 50-day at $12.55 and above its recent high of $12.79 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 1,907,710 shares as bullish. If EXPR can maintain that trend, then this stock will set up to re-fill some of that previous gap back towards $15 a share or higher.
I would simply avoid EXPR or look for short-biased trades if after earnings it fails to hold its trend into the gap, and then moves back below some key near-term support levels at $11.50 to $10.47 a share with heavy volume. If we get that action, then EXPR will set up to enter new 52-week low territory, which is bearish technical price action. Some possible downside targets are $9 to $8 a share.
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.
Twitter and become a fan on Facebook.
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