Millennial Media

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Another earnings short-squeeze prospect is mobile advertising platform player Millennial Media ( MM), which is set to release numbers on Wednesday after the market close. Wall Street analysts, on average, expect Millennial Media to report revenue of $49.53 million on a loss of 2 cents per share.

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The current short interest as a percentage of the float for Millennial Media is extremely high at 21.6%. That means that out of the 33.39 million shares in the tradable float, 6.78 million shares are sold short by the bears. This is a big short interest on a stock with a relativity low float. If Millennial Media can deliver the earnings news the bulls are looking for, then this stock could easily explode higher post-earnings.

From a technical perspective, MM is currently trending above its 50-day moving average and well below its 200-day moving average, which is neutral trendwise. This stock has been uptrending strong for the last month and change, with shares moving higher from its low of $5.87 to its recent high of $7.32 a share. During that uptrend, shares of MM have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of MM within range of triggering a major breakout trade post-earnings.

If you're bullish on MM, 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 $7.37 to $8 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 1.82 million shares. If that breakout triggers, then MM will set up to re-test or possibly take out its next major overhead resistance levels at $9 to $10 a share.

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