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My final earnings short-squeeze trade idea today is oil and gas operations player Hyperdynamics ( HDY), which is set to release numbers on Tuesday at 10 a.m. This company is an oil and gas exploration company with prospects in offshore Republic of Guinea in Northwest Africa. There are currently no Wall Street estimates available for Hyperdynamics.

This stock has performed poorly so far in 2012, with shares down by over 60%. This stock is currently trading just 20 cents off its 52-week low of 56 cents per share. The current short interest as a percentage of the float for Hyperdynamics is rather high at 11.2%. That means that out of the 165.98 million shares in the tradable float, 18.43 million are sold short by the bears.

From a technical perspective, HDY is currently trading above its 50-day moving average and below its 200-day moving average, which is neutral trendwise. This stock has been downtrending badly for the past six months, with shares dropping from over $1.30 to its recent low of 62 cents per share. During that downtrend, shares of HDY have mostly made lower highs and lower lows, which is bearish technical price action.

If you're bullish on HDY, then I would wait until after they report and look for long-biased trades if it can manage to take out some near-term overhead resistance levels at 83 to 93 cents per share with high volume. Look for volume on that move that hits near or above its three-month average volume of 842,183 shares. If we get that action, then PMFG will have a great chance of re-testing or possibly taking out its next major

To see more potential earnings short squeeze plays, check out the Earnings Short Squeeze Plays portfolio on Stockpickr.

-- Written by Roberto Pedone in Winderemere, Fla.


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At the time of publication, author had no positions in stocks mentioned.

Roberto Pedone, based out of Windermere, Fla., is an independent trader who focuses on stocks, options, futures, commodities and currencies. He is also an outside contributor to Beconequity.com and maintains the website Maddmoney.net, which he sold to Blue Wave Advisors in 2008. Roberto studied International Business at The Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany.

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