Another earnings short-squeeze play is cardiac support systems developer AbioMed (ABMD - Get Report), which is set to release numbers on Wednesday before the market open. Wall Street analysts, on average, expect AbioMed to report revenue of $38.04 million on earnings of 7 cents per share.
The current short interest as a percentage of the float for AbioMed is extremely high at 21.1%. That means that out of the 34.72 million shares in the tradable float, 7.61 million shares are sold short by the bears. This is a low float high short interest situation, so any bullish earnings news could easily send shares of ABMD soaring higher as the bears rush to cover some of their bearish bets.From a technical perspective, ABMD is currently trending above its 50-day moving average and well below its 200-day moving average, which is neutral trendwise. This stock has been trending sideways during the last three months, with shares moving between $14.94 on the upside and $11.80 on the downside. Shares of ABMD have recently pushed back above its 50-day moving average of $13.30 a share and its now quickly moving within range of breaking out above the upper-end of its recent sideways chart pattern. If you're bullish on ABMD, 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 levels at $14.13 to $14.94 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 941,987 shares. If that breakout triggers, then AMBD will set up to re-test or possibly take out its next major overhead resistance level at around $16 a share. Any high-volume move above $16 will then give ABMD a chance to re-fill some of its previous gap down zone from last November that started at $20 a share. I would avoid ABMD or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below its 50-day moving average of $13.30 a share and then below some more support at $13 a share with high volume. If we get that move, then ABMD will set up to re-test or possibly take out its next major support levels at $11.96 to $11.80 a share. Any move below $11.80 a share should be considered very bearish, since it will push shares of ABMD into new 52-week low territory.