My first earnings short-squeeze trade idea is scientific and technical instrument player Illumina ( ILMN), which is set to report results on Tuesday after the market close. This company is a developer and manufacturer of life science tools and integrated systems for the analysis of genetic variation and function. Wall Street analysts, on average, expect United Rentals to report revenue of $278.71 million on earnings of 36 cents per share. Just this morning, Leerink upgraded shares of Illumina on expectations HiSeq demand may have normalized and consensus estimates are achievable. The firm raised its price target range for the stock to $54 to $56 from $46 to $50. The current short interest as a percentage of the float for Illumina is very high at 16.8%. That means that out of the 63.40 million shares in the tradable float, 11.84 million shares are sold short by the bears. From a technical perspective, ILMN is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock recently moved above its sideways trading pattern between $37.77 and $41.50 a share. That move has also pushed ILMN back above its 50-day moving average of $41.42 a share. >>5 Biotech Stocks Under $10 Set to Soar If you're bullish on ILMN, then I would wait until after they report earnings and look for long-biased trades if this stock can manage to trigger a break out above some near-term overhead resistance at $43.11 a share with high volume. Look for volume on that move that registers near or above its three-month average action of 1,354,920 shares. If we get that move, then ILMN could possibly re-test and take out its May high of $46.69 a share. I would simply avoid ILMN or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops below its 50-day at $41.42 and its 200-day at $40.33 a share with high volume. If we get that action, then ILMN could possibly re-test and take out its recent low at $37.77 a share. Illumina shows up on a recent list of 5 Stocks Hedge Funds Have Been Buying.