This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

5 Short-Squeeze Plays for Profit

Stocks in this article: FRAN BRLI TITN FNSR LULU

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.


Another earnings short-squeeze trade idea is Finisar (FNSR - Get Report), 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.

5 of 8

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs