Music streaming specialist Pandora Media (P) is set to report second-quarter earnings results after the closing bell Thursday. The company's charts suggests a 15% move upward is possible after its results are released, thanks to the increased buying pressure in shares.

Pandora stock has been on fire over the past three months, soaring some 42%, including more than 8% gains just in the past 30 days. That's not surprising, given the incredible amount of short interest the stock attracts. As of the most recent settlement date, there were 47.6 million shares shorted, amounting to about 22% of its float. This compares to, say, a music competitor like Action Alerts PLUS holding Apple(AAPL) - Get Report , which has less than 1% of its shares shorted.

Pandora, which has moved about 53% higher since falling to $8.17 in April, has burned the short-sellers. And more punishment could be on the way for the doubters if Pandora can deliver another beat and raise on Thursday.

Take a look at the chart, courtesy of TradingView.

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Pandora shares closed Tuesday at $12.50, down 2.42%.

Despite the bullish run the shares have enjoyed, the stock is still down 6.8% year to date, against a 5.9% rise in the S&P 500 (SPX) . This means Pandora stock, which is still down some 45% from its 52-week high, is still making up for lost ground. That's an important factor in why the shares are poised to rise.

You can see from the chart that the stock has also come a long way since falling to its 52-week low of $7.75 in February. The pullback on Tuesday has put the stock below the 20-day moving average ($12.52 -- blue line), though it is firmly above both the 50-day ($11.69 -- blue line) and 100-day ($10.63 -- yellow line) benchmarks.

The scenario above suggests two things. First, the weak hands have left the stock. Anyone who has wanted to sell may have already done so. Secondly, the fact that the stock has underperformed the market year to date implies that Pandora is not as overheated as stocks that have made similar moves.

Given its high short interest, Pandora stock has the perfect set-up for a short squeeze, which could push the shares toward their December highs of around $14.50.

This article is commentary by an independent contributor. At the time of publication, the author held no positions in the stocks mentioned.