I would simply avoid FRAN or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below some key near-term support at $24.95 a share with high volume. If we get that move, then FRAN will set up to re-test or possibly take out its next major support level at $23.76 a share. Any move below $23.76 will then put $22 to $20.93 into focus for shares of FRAN.
Another potential earnings short-squeeze trade is
(BRLI - Get Report)
which is set to release its numbers on Thursday before the market open. This company is engaged in offering testing, information and related services to physician offices, clinics, hospitals, employers and governmental units. Wall Street analysts, on average, expect Bio-Reference Laboratories to report revenue of $175.64 million on earnings of 46 cents per share.
During the last quarter, Bio-Reference Laboratories reported revenue of $172.3 million and GAAP sales were 16% higher than the prior-year quarter's $148 million. The company's GAAP EPS for the last quarter was 25% higher than the prior-year quarter's 36 cents per share.
The current short interest as a percentage of the float for Bio-Reference Laboratories is extremely high at 36.8%. That means that out of the 24.49 million shares in the tradable float, 9.01 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 7.5%, or by about 625,000 shares. If the bears are caught leaning too hard into this quarter, then shares of BRLI could explode higher post-earnings.
From a technical perspective, BRLI is currently trending above its 200-day moving average and just below its 50-day moving average, which is neutral trendwise. This stock has been downtrending for the last two months, with shares dropping from a high of $32.86 to a recent low of $23.66 a share. During that move, shares of BRLI were consistently making lower highs and lower lows, which is bearish technical price action. That said, shares of BRLI have started to rebound off that $23.66 low and move within range of triggering a near-term breakout trade post-earnings.