I would simply avoid ANGI 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 levels at $19.67 a share to its 50-day at $18.55 a share with high volume. If we get that move, then ANGI will set up to re-test or possibly take out its next major support levels $18.15 to $16 a share. Any high-volume move below $16 will then give ANGI a chance to re-fill its previous gap up zone from February that started just below $14 a share.
Another potential earnings short-squeeze candidate is automated retail solutions provider
), which is set to release numbers on Thursday after the market close. Wall Street analysts, on average, expect Coinstar to report revenue of $579.41 million on earnings of 86 cents per share.
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The current short interest as a percentage of the float for Coinstar is extremely high at 48.1%. That means that out of the 25.90 million shares in the tradable float, 13.21 million shares are sold short by the bears. This is a monster short interest on a stock with a relatively low tradable float. Any bullish earnings news from Coinstar could easily set off a large short-squeeze for the stock post-earnings.
From a technical perspective, CSTR is currently trending below its 50-day moving average and just above its 200-day moving average, which is neutral trendwise. This stock recently formed a double top at around $59.16 to $59.31 a share. Following that top, shares of CSTR have dived lower and trended back below its 50-day moving average of $54.89 a share.
If you're bullish on CSTR, then I would wait until after its report and look for long-biased trades if this stock manages to break out back above its 50-day at $54.89 a share with strong volume. Look for volume on that move that hits near or above its three-month average volume of 963,660 million shares. If we get that breakout, then CSTR will set up to re-test or possibly take out its next major overhead resistance levels at $58 to $59.31 a share. Any high-volume move above $59.31 will then put $62.50 to $65 into range for shares of CSTR.