Schnitzer Steel Industries Another earnings short-squeeze prospect is Schnitzer Steel Industries ( SCHN), a recycler of ferrous and nonferrous scrap metal, which is set to release numbers on Wednesday before the market open. Wall Street analysts, on average, expect Schnitzer Steel Industries to report revenue of $683.44 million on earnings of 24 cents per share. If you're looking for a heavily-shorted stock that's entered oversold territory ahead of its earnings report this week, then make sure to check out shares of Schnitzer Steel Industries. This stock currently sports a relative strength index reading of 27.5, and shares of SHCN have dropped 14.7% so far in 2013. The current short interest as a percentage of the float for Schnitzer Steel Industries is rather high at 9.9%. That means that out of the 25.61 million shares in the tradable float, 2.40 million shares are sold short by the bears. The bears have also been increasing their bets from the last reporting period by 8.8%, or by about 193,000 shares. If the bears are caught pressing their bets into a solid quarter, then we could see shares of SCHN spike notably higher post-earnings. From a technical perspective, SCHN is currently trending below both its 50-day and 200-day moving averages, which is bearish. This stock has been downtrending badly for the last three months, with shares dropping from its high of $32.79 to its intraday low of $25.65 a share. During that downtrend, shares of SCHN have been mostly making lower highs and lower lows, which is bearish technical price action. If you're bullish on SCHN, 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 $27 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 342,734 shares. If that breakout triggers, then SCHN will set up to re-test or possibly take out its next major overhead resistance levels at its 200-day moving average of $28.52 or its 50-day moving average at $28.88 a share. Any high-volume move above those levels will then put $30 to $31 into range for shares of SHCN.