Another earnings short-squeeze candidate is multi-channel specialty retailer of products for the home Williams-Sonoma ( WSM), which is set to release numbers on Wednesday after the market close. Wall Street analysts, on average, expect Williams-Sonoma to report revenue of $939.80 million on earnings of 47 cents per share. Just this morning, UBS increased its price target on shares of Williams-Sonoma to $61 as consumer spending continues to improve. In the report, UBS also increased its EPS estimates for WSM. >>3 Big Stocks to Trade (or Not) The current short interest as a percentage of the float for Williams-Sonoma is pretty high at 8.1%. That means that out of the 90.53 million shares in the tradable float, 7.62 million shares are sold short by the bears. If the bulls get the earnings news they're looking for, then shares of WSM could rip sharply higher post-earnings and squeeze out some of the short-sellers. From a technical perspective, WSM is currently trending above both its 50-day and 200-day moving averages, which is bullish. This stock has been uptrending strong for the last six months, with shares soaring higher from its low of $43.82 to its recent high of $61.38 a share. During that uptrend, shares of WSM have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of WSM within range of triggering a big breakout trade post-earnings. If you're bullish on WSM, 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 $60.67 to its 52-week high at $61.38 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 871,462 shares. If that breakout triggers, then WSM will set up enter new 52-week high territory, which is bullish technical price action. Some possible upside targets off that breakout are $70 to $75 a share. I would avoid WSM 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 of $58.03 a share and then below more support at to $56.96 a share with high volume. If we get that move, then WSM will set up to re-test or possibly take out its next major support levels at $52.40 to $51.71 a share.