This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Stocks Ready to Pop on Bullish Earnings

Twitter

Another potential earnings short-squeeze candidate is social media player Twitter (TWTR), which is set to release numbers on Tuesday after the market close. Wall Street analysts, on average, expect Twitter to report revenue of $241.47 million on a loss of 3 cents per share.

>>5 Mega-Cap Stocks to Trade for Gains

The current short interest as a percentage of the float for Twitter is very high at 18%. That means that out of the 331.44 million shares in the tradable float, 45.76 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 2.1%, or by about 983,000 shares. If the bears get caught pressing their bets into a strong quarter, then shares of TWTR could easily soar sharply higher post-earnings as the bears rush to cover some of their positions.

From a technical perspective, TWTR is currently trending below its 50-day moving average, which is bearish. This stock has been downtrending badly over the last four months, with shares moving lower from its high of $74.73 to its recent low of $39.68 a share. During that downtrend, shares of TWTR have been making mostly lower highs and lower lows, which is bearish technical price action.

If you're bullish on TWTR, 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 $45 to $47 a share and then once it clears its 50-day moving average of $49.33 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 13.03 million shares. If that breakout materializes after earnings, then TWTR will set up to re-test or possibly take out its next major overhead resistance levels at $55 to $60 a share.

I would avoid TWTR 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 $39.68 to its 52-week low of $38.80 a share with high volume. If we get that move, then TWTR will set up to enter new 52-week-low territory, which is bearish technical price action. Some possible downside targets off that move are $30 to $25 a share.

4 of 6

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,912.11 -70.48 -0.42%
S&P 500 1,969.95 -8.96 -0.45%
NASDAQ 4,442.6980 -2.2110 -0.05%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs