If you're in the bull camp on ZQK, then I would wait until after its report and look for long-biased trades once it breaks out above some key overhead resistance levels at $4.25 to $4.61 a share and then above $4.89 a share with high volume. Look for volume on that move that registers near or above its three-month average action of 1,230,900 shares. If that breakout triggers, then ZQK will set up to re-test or possibly take out its next major overhead resistance levels at $5.58 to $5.70 a share.
I would simply avoid ZQK if after its report the stock fails to trigger that breakout, and then drops back below some key near-term support levels at $4 to $3.83 a share with high volume.
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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