I would avoid JAKK 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 $4.68 to $4.51 a share and the below its 52-week low at $4.45 a share. If we get that move, then JAKK will set up to enter new 52-week-low territory, which is bearish technical price action. Some possible downside targets off that move are $4 to $3.50 a share.
Another earnings short-squeeze prospect is cloud-based services provider
), which is set to release numbers on Wednesday after the market close. Wall Street analysts, on average, expect ServiceNow to report revenue of $105.33 million on a loss of 2 cents per share.
Just recently, UBS said it expects ServiceNow to growth at least 20% faster than its competitors in 2014, and the firm expects the stock to continue to outperform as its cloud offerings are adopted by many more companies. The firm has an outperform rating on the stock and it raised its price target to $62 from $50.
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The current short interest as a percentage of the float for ServiceNow stands at 5.3%. That means that out of the 119.61 million shares in the tradable float, 6.28 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 for shares of NOW post-earnings if the bulls get the earnings news they're looking for.
From a technical perspective, NOW is currently trending just above its 50-day moving average and well below its 200-day moving average, which is bullish. This stock has been uptrending strong for the last five months, with shares soaring higher from its low of $35.21 to its recent high of $55.46 a share. During that uptrend, shares of NOW have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of NOW within range of triggering a big breakout trade post-earnings.