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.


Follow Stockpickr on Twitter and become a fan on Facebook.

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.

If you liked this article you might like

How Long Can This Rally Run?: Cramer's 'Mad Money' Recap (Monday 9/19/17)

Cramer: How to Avoid Being Amazon Roadkill

Adidas Is Beating Nike in Sneaker Market Share, New Survey Reveals

It's Decision Time for the Fed in the Week Ahead

Fight Off Complacency: Cramer's 'Mad Money' Recap (Fri 9/15/17)