Another potential earnings short-squeeze play is Ebix ( EBIX), a software and e-commerce solutions provider to the insurance industry, which is set to release numbers on Thursday before the market open. Wall Street analysts, on average, expect Ebix to report revenue of $54.34 million on earnings of 45 cents per share
The current short interest as a percentage of the float for Ebix is extremely high at 39%. That means that out of the 33.45 million shares in the tradable float, 13.13 million shares are sold short by the bears. If this company can deliver the earnings news the bulls are looking for, then we could easily see a monster short-squeeze develop post-earnings.
From a technical perspective, EBIX is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been trending sideways for the last month, with shares moving between $16.99 on the upside and around $15 on the downside. A high-volume move above the upper-end of that range post-earnings will likely trigger a major breakout trade for shares of EBIX.If you're bullish on EBIX, 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 $15.98 to $16.99 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 547,455 shares. If that breakout triggers, then EBIX will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $19.24 to $19.84 a share. Any high-volume move above $19.84 will then put $22 to $23 into range for shares of EBIX. I would avoid EBIX or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below some key near-term support at $15 a share with high volume. If we get that move, then EBIX will set up to re-test or possibly take out its next major support levels at $14 to $13 a share.
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