Jive Software

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Another potential earnings short-squeeze play is social business software platform provider Jive Software ( JIVE), which is set to release its numbers on Tuesday after the market close. Wall Street analysts, on average, expect Jive Software to report revenue of $31.15 million on a loss of 15 cents per share.

Just this morning, Credit Suisse reccomended Jive Software as a buy, with a $20 price target, ahead of its earnings report.

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The current short interest as a percentage of the float for Jive Software is extremely high at 29.9%. That means that out of the 27.02 million shares in the tradable float, 6.27 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 4.9%, or by about 293,000 shares. If the bears are caught pressing their bets into a strong quarter, then we could easily see a big short-squeeze develop post-earnings.

From a technical perspective, JIVE is currently trending above its 50-day moving average and below its 200-day moving average, which is neutral trendwise. This stock has been uptrending strong for the last three months, with shares soaring from its low of $10.63 to its recent high of $15.86 a share. During that uptrend, shares of JIVE have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of JIVE within range of triggering a major breakout trade post-earnings.

If you're in the bull camp on JIVE, 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 levels at $15.80 to $15.86 a share and then once it clears its 200-day moving average at $16.36 a share with high volume. Look for volume on that move that registers near or above its three-month average volume of 660,403 shares. If that breakout triggers, then JIVE will set up to re-fill some of its previous gap down zone from last August that started near $19.89 a share.

I would simply avoid JIVE or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below its 50-day at $14.46 and more support levels at $14.28 to $13.86 a share with high volume. If we get that move, then JIVE will set up to re-test or possibly take out its next major support levels at $13 to $12.76 a share.

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