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Another earnings short-squeeze prospect is molecular diagnostic player Myriad Genetics (MYGN), which is set to release numbers on Tuesday after the market close. Wall Street analysts, on average, expect Myriad Genetics to report revenue of $159.87 million on earnings of 44 cents per share.
This company has managed to beat Wall Street estimates three times during the last four quarters. If Myriad Genetics pulls off another beat, then this stock could easily experience a tradable short-squeeze.
The current short interest as a percentage of the float for Myraid Genetics is pretty high at 13.8%. That means that out of the 79.35 million shares in the tradable float, 10.96 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 17%, or by about 1.59 million shares. If the bears are caught pressing their bets into a bullish quarter, then shares of MYGN could explode higher post-earnings as the bears jump to cover some of their short bets.
From a technical perspective, MYGN is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been trending sideways for the past month, with shares moving between $29.07 on the downside and $32.05 on the upside. A high-volume move above the upper-end of its recent range post-earnings could trigger a major breakout trade for shares of MYGN.
If you're bullish on MYGN, 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 $31 to $32.05 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 2.07 million shares. If that breakout triggers, then MYGN will set up to re-test or possibly take out its next major overhead resistance level at its 52-week high of $38.27 a share. Any high-volume move above $38.27 will then give MYGN a chance to trend north of $40 a share.
I would avoid MYGN 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 $29.07 a share to its 200-day moving average at $28.11 a share with high volume. If we get that move, then MYGN will set up to re-test or possibly take out its next major support levels at $26 to $25 a share. Any high-volume move below those levels will then put $24 to $22 within range for shares of MYGN.
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