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My first earnings short-squeeze play today is Internet professional network player
LNKD), which is set to release numbers on Thursday after the market close. Wall Street analysts, on average, expect LinkedIn to report revenue of $317.08 million on earnings of 31 cents per share.
The current short interest as a percentage of the float for LinkedIn is notable at 6.7%. That means that out of the 89.12 million shares in the tradable float, 4.11 million shares are sold short by the bears. This isn't a huge short interest, but it's more than enough to spark a solid short-covering rally if LinkedIn can deliver the earnings news the bulls are looking for.
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From a technical perspective, LNKD is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last month, with shares moving higher from its recent low of $165.01 to its intraday and now all-time high of $193.37 a share. During that uptrend, shares of LNKD have been consistently making higher lows and higher highs, which is bullish technical price action.
If you're bullish on LNKD, then I would wait until after its report and look for long-biased trades if this stock manages to break out to a new all-time high above $193.37 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 2.35 million shares. If that breakout triggers, then LNKD will set up to enter new all-time territory, which is bullish technical price action. Some possible upside targets off that move are $210 to $220 a share, or possibly even $230 a share.
I would simply avoid LNKD 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 $185 to $180 a share with high volume. If we get that move, then LNKD will set up to re-test or possibly take out its 50-day moving average at $175.01 a share.