My first earnings short-squeeze play today is retailer of juices, smoothies and health foods
(JMBA - Get Report)
, which is set to release numbers on Tuesday after the market close. Wall Street analysts, on average, expect Jamba to report revenue of $46.03 million on a loss of 11 cents per share.
If you're looking for a stock with a decent short interest that's been uptrending strong in front of its earnings report this week, then make sure to check out shares of Jamba. This stock has been on fire so far in 2013, with shares up 23.6%.
The current short interest as a percentage of the float for Jamba is notable at 6.3%. That means that out of the 76.68 million shares in the tradable float, 4.39 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 17.9%, or by about 668,000 shares. If the sellers are caught leaning too hard into a strong quarter, then shares of JMBA could rip higher post-earnings.
From a technical perspective, JMBA 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 four months, with shares soaring higher from its low of $1.81 to its recent high of $2.90 a share. During that uptrend, shares of JMBA have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of JMBA within range of triggering a near-term breakout trade.
If you're bullish on JMBA, 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 $2.82 to $2.94 a share with high volume. Look for volume on that move that registers near or above its three-month average action of 871,238 million shares. If that breakout hits, then JMBA will set up to enter new 52-week high territory above $2.94 a share, which is bullish technical price action. Some possible upside targets off that breakout are $3.50 to $4 a share.