I would simply avoid PLAB or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below some near-term support at $4.94 a share with high volume. If we get that action, then PLAB will set up to re-test or possibly take out its next major support levels at $4.80 to $4.56 a share. Any move below $4.56 would then push PLAB into new 52-week 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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