One potential earnings short-squeeze play in the biotechnology and drugs complex is Hi-Tech Pharmacal ( HITK), which is set to release numbers on Wednesday before the market open. This company is a specialty manufacturer and marketer of prescription, over-the-counter and nutritional products. Wall Street analysts, on average, expect Hi-Tech Pharmacal to report revenue of $57.56 million on earnings of 68 cents per share. The current short interest as a percentage of the float for Hi-Tech Pharmacal is sits at 4.9%. That means that out of the 10.58 million shares in the tradable float, 509,000 shares are sold short by the bears. This isn't a huge short interest, but it's more than enough to spark a decent short-covering rally post-earnings if the bulls get the news they're looking for. From a technical perspective, HITK is currently trading above both its 50-day and 200-day moving averages, which is bullish. This stock has been on a tear during the last two months, with shares soaring from a low of $27.35 to a recent high of $36.27 a share. During that sharp spike higher, shares of HITK have consistently made higher lows and higher highs, which is bullish technical price action. That move has now pushed HITK within range of triggering a near-term breakout trade post-earnings. If you're bullish on HITK, then I would wait until after they report and look for long-biased trades if this stock can manage to take out some near-term overhead resistance levels at $36.27 to $36.49 a share with high volume. Look for volume on that move that registers near or above its three-month average action of 92,196 shares. If we get that move, then HITK will setup to re-test and possibly take out its next overhead resistance level at $38.16 a share. If $38.16 gets taken out with volume, then HITK could trend back towards $40 to $43 a share post-earnings. I would avoid HITK or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops below some near-term support at $34.53 a share with heavy volume. If we get that action, then HITK could easily take out its 50-day moving average of $33.21 a share, and then drop lower towards $30 to $29 a share post-earnings.