From a technical perspective, MTN 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 month, with shares moving higher from its low of $50.74 to its intraday high of $56.75 a share. During that uptrend, shares of MTN have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of MTN within range of triggering a near-term breakout trade post-earnings.
If you're bullish on MTN, 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 $56.89 a share and then once it takes out more resistance at $58.19 to $59.09 a share with high volume. Look for volume on that move that registers near or above its three-month average action of 247,988 shares. If that breakout triggers, then MTN will set up to enter new 52-week high territory above $59.49 a share, which is bullish technical price action. Some possible upside targets off that breakout are $65 to $67 a share.
I would avoid MTN 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 at $54.23 a share with high volume. If we get that move, then MTN will set up to re-test or possibly take out its next major support levels at its 200-day of $52.17 or at $50.74 to $49.18 a share.
Thor IndustriesMy final earnings short-squeeze play today is manufacturer and seller of recreation vehicles and small to mid-sized buses Thor Industries (THO - Get Report), which is set to release numbers on Thursday after the market close. Wall Street analysts, on average, expect Thor Industries to report revenue of $715.73 million on earnings of 38 cents per share. If you're looking for a stock with a decent short interest that's been uptrending strong heading into its earnings report this week, then make sure to check out shares of Thor Industries. This stock has been in play with the bulls for the last six months, with shares up 21%.