If you're in the bull camp on NAHU, then I would wait until after its report and look for long-biased trades if this stock manages to break out above some near-term overhead resistance at its 50-day moving average of $3.91 and then once it takes out more overhead resistance levels at $4.15 to $4.25 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 20,371 shares. If that breakout hits, then NAHU will set up to re-test or possibly take out its next major overhead resistance levels at $4.41 to $4.70 a share. Any high-volume move above those levels will then put $4.80 to $5.05 into focus for shares of NAHU.

I would simply avoid NAUH after its reports if it fails to trigger that breakout, and then drops back below that recent low of $3.22 a share with high volume. Any move below $3.22 a share will then push NAUH into new 52-week low territory, which is bearish technical price action.

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 technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

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