I would avoid MLNX 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 its 50-day of $55.67 a share and then below more support at $54.91 a share with high volume. If we get that move, then MLNX will set up to re-test or possibly take out its next major support levels at $51.50 to $49.84 a share. Any high-volume move below $49.84 will then put $45 or lower into range for shares of MLNX.
My final earnings short-squeeze play idea today is online travel player
), which is set to release numbers on Thursday after the market close. Wall Street analysts, on average, expect Expedia to report revenue of $965.73 million on earnings of 23 cents per share.
The current short interest as a percentage of the float for Expeida is notable at 8.3%. That means that out of the 104.98 million shares in the tradable float, 8.85 million shares are sold short by the bears. If the bulls get the earnings news they're looking for, then shares of EXPE could easily see a sharp rally higher post-earnings.
From a technical perspective, EXPE is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has recently started to trend back above its 50-day moving average at $63.44 a share. That move is quickly pushing shares of EXPE within range of triggering a near-term breakout trade post-earnings.
If you're in the bull camp on EXPE, 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 $65.39 to $66.93 a share and then once it takes out its 52-week high at $68.09 a share with high volume. Look for volume on that move that hits near or above its three-month average volume of 2.23 million shares. If that breakout triggers, then EXPE will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $80 to $90 a share.