I would avoid OXM or look for short-biased trades if after earnings it fails to trigger that move, and then drops back below some key near-term support levels at $63 to $61.10 a share with high volume. If we get that move, then OXM will set up to re-test or possibly take out its next major support levels at $57.70 a share to its 200-day moving average at $57.09 a share.
Another earnings short-squeeze prospect is specialty retailer of women's apparel, accessories, jewelry and gift items Coldwater Creek (CWTR - Get Report), which is set to release numbers Tuesday after the market close. Wall Street analysts, on average, expect Coldwater Creek to report revenue of $162.81 million on a loss of 63 cents per share.
The current short interest as a percentage of the float for Coldwater Creek is very high at 18.8%. That means that out of the 12.17 million shares in the tradable float, 3.47 million shares are sold short by the bears. This is a big short interest on a stock with a very low tradable float. If the bulls get the earnings news they're looking for, then this stock could easily explode higher post-earnings.From a technical perspective, CWTR is currently trending just below its 50-day moving average and well below its 200-day moving average, which is bearish. This stock has been trending sideways for the last two months, with shares moving between $2.16 on the downside and $2.80 on the upside. A high-volume move above the upper-end of its recent range could trigger a breakout trade for CWTR post-earnings. If you're bullish on CWTR, 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 $2.51 to $2.69 a share and then once it takes out more resistance at $2.80 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 192,994 shares. If that breakout hits, then CWTR will set up to re-fill some of its previous gap down zone from June that started near $3.60 a share.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts