Another potential earnings short-squeeze trade is biotechnology and drugs player Forest Laboratories ( FRX), which is set to release its numbers on Tuesday before the market open. This company develops, manufactures and sells branded forms of ethical drug products, most of which requires a physician's prescription. Wall Street analysts, on average, expect Forest Laboratories to report revenue of $813.30 million on earnings of 24 cents per share. This company is looking to top Wall Street estimates for the third quarter in a row this week. During the last quarter, Forest Laboratories beat Wall Street estimates after reporting net income of 78 cents per share vs. estimates of 71 cents per share. During the prior quarter, the company reported a profit of $1.04 a share. The current short interest as a percentage of the float for Forest Laboratories is notable at 6.3%. That means that out of the 236.46 million shares in the tradable float, 16.6 million shares are sold short by the bears. If Forest Laboratories can deliver the numbers that the bulls are looking for, then this stock could see a tradable shorts-squeeze develop post-earnings. From a technical perspective, FRX is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock has uptrending for the last six months, with shares trending higher from around $31 to a recent high of $36.44 a share. During that uptrend, shares of FRX have mostly made higher lows and higher highs, which is bullish technical price action. That move has now pushed FRX within range of triggering a near-term breakout trade post-earnings. If you're bullish on FRX, then I would wait until after it reports numbers and look for long-biased trades if this stock takes out some near-term overhead resistance at $36.44 a share high volume. Look for volume on that move that hits near or above its three-month average action of 1.9 million shares. If we get that move, then FRX could easily hit $39 to $40 a share post-earnings if the bulls gain full control of this stock. I would simply avoid FRX or look for short-biased trades if after earnings this stock fails to trigger that breakout and then takes out some near-term support at $34.86 and its 50-day moving average of $34.43 a share with high volume. If we get that move, then FRX will setup to re-test its next significant support levels at $33.04 to its 200-day moving average at $32.44 a share post-earnings.