My first earnings short-squeeze play today is Internet professional network player LinkedIn ( 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.>>3 Tech Stocks Rising on Unusual Volume 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.