From a technical perspective, TITN is currently trending just above its 50-day moving average and well below its 200-day moving average, which is neutral trendwise. This stock has been uptrending modestly for the last three months, with shares moving higher from a low of $19.07 to a recent high of $23.95 a share. During that uptrend, shares of TITN have been mostly making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of TITN within range of triggering a near-term breakout trade post-earnings.
If you're bullish on TITN, then I would wait until after its report and look for long-biased trades once this stock breaks out above some near-term overhead resistance levels at $23.20 to $23.95 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 709,290 shares. If that breakout triggers, then TITN will set up to re-test or possibly take out its next major overhead resistance levels at $25.69 to its 200-day at $26.67 a share. Any high-volume move back above its 200-day will then put $29.11 to $30.32 into focus for shares of TITN.
I would avoid TITN 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 its 50-day of $21.53 a share with high volume. If we get that action, then TITN will set up to re-test or possibly take out its next major support levels at $19.77 to $19.07 a share. Any move below $19.07 will then push TITN into new 52-week low territory, which is bearish technical price action.
FinisarAnother earnings short-squeeze trade idea is Finisar (FNSR), which is set to release numbers on Wednesday after the market close. This company is a provider of optical subsystems and components that are used in data communication and telecommunication applications. Wall Street analysts, on average, expect Finisar to report revenue of $231.85 million on earnings of 14 cents per share. On Monday, Needham upgraded its rating on Finisar from hold to buy and changed its price target to $18 a share. This company missed Wall Street estimates the last quarter after being in line with estimates in the prior quarter. During the first quarter, it reported net income of 2 cents per share versus Wall Street estimates of 9 cents per share.
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