I would simply avoid CERE if after its report it fails to trigger that breakout, and then drops back below some key near-term support levels at $4.07 to $4 a share with heavy volume. If we get that action, then CERE will set up to re-test or possibly take out its next major support levels at $3.73 to $3.61 a share. Any move below $3.43 would then push CERE 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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