If you're in the bull camp on NAHU, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance at its 50-day moving average of $3.91 and then once it takes out more overhead resistance levels at $4.15 to $4.25 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 20,371 shares. If that breakout hits, then NAHU will set up to re-test or possibly take out its next major overhead resistance levels at $4.41 to $4.70 a share. Any high-volume move above those levels will then put $4.80 to $5.05 into focus for shares of NAHU.
I would simply avoid NAUH after its reports if it fails to trigger that breakout, and then drops back below that recent low of $3.22 a share with high volume. Any move below $3.22 a share will then push NAUH 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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