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Another potential earnings short-squeeze trade is
HomeAway(AWAY), an online marketplace for the vacation rental industry, which is set to release its numbers on Tuesday after the market close. Wall Street analysts, on average, expect HomeAway to report revenue of $78.64 million on earnings of 13 cents per share.
The current short interest as a percentage of the float for HomeAway is very high at 18.2%. That means that out of the 62.63 million shares in the tradable float, 8.82 million shares are sold short by the bears. Any bullish earnings news from Home Away could easily spark a solid short-covering rally for the stock post-earnings.
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From a technical perspective, AWAY is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been trending sideways for the last month and change, with shares moving between $29.14 on the downside and $34.30 on the upside. A high-volume move above the upper-end of its recent range could easily trigger a near-term breakout trade for shares of AWAY.
If you're in the bull camp on AWAY, 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 $33 to $34.30 a share with high volume. Look for volume on that move that hits near or above its three-month average volume of 990,000 shares. If that breakout his, then AWAY will set up to enter new 52-week-high territory above $34.30, which is bullish technical price action. Some possible upside targets off that breakout are $38 to $42 a share.
I would simply avoid AWAY or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below key near-term support levels at $31.49 to its 50-day at $30 and then below more support at $29.14 a share with high volume. If we get that move, then AWAY will set up to re-test or possibly take out its next major support levels $27.75 to $25 a share.