DeVry

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Another earnings short-squeeze prospect is educational services provider DeVry ( DV), which is set to release numbers on Tuesday after the market close. Wall Street analysts, on average, expect DeVry to report revenue of $516.64 million on earnings of 82 cents per share.

Just recently, Compass Point initiated coverage on DeVry with a buy rating and a price target of $37 per share. The current short interest as a percentage of the float for DeVry stands at 11%. That means that out of the 56.53 million shares in the tradable float, 6.15 million shares are sold short by the bears.

From a technical perspective, DV is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock recently has been uptrending modestly for the last month, with shares moving higher from its low of $30.09 to its intraday high of $33.20 a share. That move is quickly pushing shares of DV within range of triggering a near-term breakout trade post-earnings.

If you're bullish on DV, then I would wait until after its report and look for long-biased trades if this stock manages to break out to a new 52-week high above $33.32 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 855,000 shares. If that breakout triggers, then DV will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $40 to $42 a share.

I would avoid DV or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below its 50-day moving average at $30.98 a share and then below more support at $30.09 to $29.36 a share with high volume. If we get that move, then DV will set up to re-fill its previous gap up zone from February that started at around $25.50 a share.

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