I would simply avoid GBX or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below some near-term support at $21.87 a share with high volume. If we get that move, then GBX will set up to re-test or possibly take out its 50-day moving average at $20.71 a share. A high-volume move below its 50-day will then put $19.39 to $18 into range for shares of GBX.
To see more potential earnings short squeeze plays, check out the Earnings Short Squeeze Plays portfolio on Stockpickr.
-- Written by Roberto Pedone in Winderemere, Fla.
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