Another potential earnings short-squeeze play is image-sensing device maker
OmniVision Technologies (
OVTI), which is set to release its numbers on Thursday after the market close. Wall Street analysts, on average, expect OmniVision Technologies to report revenue of $318.26 million on earnings of 21 cents per share.
During the last quarter, this company reported revenue of $423.5 million, and GAAP reported sales were much higher than the prior-quarter's $185.2 million.
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The current short interest as a percentage of the float for OmniVision Technologies is pretty high at 14.6%. That means that out of the 53.48 million shares in the tradable float, 8.05 million shares are sold short by the bears. This is a large short interest on a stock with a relatively low float. Any bullish earnings news could easily send shares of OVTI sharply higher post-earning.
From a technical perspective, OVTI 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 and change, with shares moving higher from its low of $12.06 to its intraday high of $14.75 a share. During that uptrend, shares of OVTI have been consistently making higher lows and higher highs, which is bullish technical price action. That move has started to push shares of OVTI into its previous gap down zone from March that started at $15.88 a share.
If you're in the bull camp on OVTI, 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 $15.88 to $16.30 a share with high volume. Look for volume on that move that registers near or above its three-month average volume of 932,262 shares. If that breakout triggers, then OVTI will set up to re-test or possibly take out its next major overhead resistance levels at $17.85 to $20 a share. Any high-volume move above $21.11 will then put a previous gap down zone into play from late 2011 that started at $26.50 a share.