My first earnings short-squeeze candidate is oil and gas exploration and development player Triangle Petroleum ( TPLM), which is set to report its results on Thursday before the market open. Wall Street analysts, on average, expect Triangle Petroleum to report revenue of $3.35 million on a loss of 4 cents per share. The current short interest as a percentage of the float for Triangle Petroleum is notable at 8.3%. That means that out of the 39.28 million shares in the tradable float, 3.55 million are sold short by the bears. The short-sellers have also been increasing their bets from the last reporting period by 14%, or by about 435,000 shares. From a technical standpoint, TPLM is currently trading below both its 50-day and 200-day moving averages, which is bearish. For the past two months, this stock has been trading inside of a range, between $4.80 and $6.40 a share. The stock is currently trading near $5.19 a share and it has just broken below its 50-day moving average of $5.24 a share.
If you're bullish on TPLM, I would look to buy some shares after their report if the stock can manage to hold above that range low of $4.80. I would then add to any long positions once the stock trades above $5.50 on high volume. Look for volume that's close to or above its three-month average volume of 598,703 shares. Target a run back toward that range high of $6.40, and add to any long positions if that level is taken out with volume. I would avoid TPLM completely if after their earnings report, the stock takes out $4.80 on heavy volume. A big volume move below that support zone should set this stock up to trade back towards $4 a share, or possibly much lower.