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Another potential earnings short-squeeze candidate is performance engineered film maker
Uni-Pixel(UNXL - Get Report), which is set to release numbers on Tuesday after the market close. Wall Street analysts, on average, expect Uni-Pixel to report revenue of $80,000 on a loss of 25 cents per share.
If you're looking for a heavily shorted stock with a strong uptrend heading into its earnings report this week, then check out shares of Uni-Pixel. This stock is up a whopping 183% during the last three month, and it's currently trading around 2 points off its 52-week high of $22.38 a share.
The current short interest as a percentage of the float for Uni-Pixel is extremely high at 28.4%. That means that out of the 8.6 million shares in the tradable float, 2.47 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 17.1%, or by 359,000 shares. If the short-sellers are caught pressing their bets too aggressively into a bullish quarter, then we could see a solid short-covering rally for UNXL post-earnings.
From a technical perspective, UNXL is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last three months, with shares soaring from its low of $10.24 to its recent high of $22.38 a share. During that uptrend, shares of UNXL have been mostly making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of UNXL within range of triggering a major breakout trade post-earnings.
If you're bullish on UNXL, 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 $21 to $22.38 a share with high volume. Look for volume on that move that hits near or above its three-month average volume of 686,158 shares. If that breakout triggers, then UNXL will set up to enter new 52-week high territory, which is bullish price action. Some possible upside targets off that breakout are $25 to $30 a share.
I would avoid UNXL or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below some near-term support levels at $18.40 to $16.60 a share with high volume. If we get that move, then UNXL will set up to re-test or possibly take out its 50-day moving average of $15.32 a share. Any high-volume move below its 50-day will then put $14.80 to $12.53 into focus for shares UNXL.