I would avoid PBY or look for short-biased trades if after earnings it fails to trigger that breakout, and then drops back below some key near-term support levels at $11.24 to $10.94 a share with high volume. If we get that move, then PBY will set up to re-test or possibly take out some key near-term support at $10.21 a share to its 52-week low at $9.17 a share.

To see more potential earnings short squeeze plays, check out the Earnings Short Squeeze Plays portfolio on Stockpickr.

-- Written by Roberto Pedone in Delafield, Wis.

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At the time of publication, author had no positions in stocks mentioned.
Roberto Pedone, based out of Delafield, Wis., is an independent trader who focuses on technical analysis for small- and large-cap stocks, options, futures, commodities and currencies. Roberto studied international business at the Milwaukee School of Engineering, and he spent a year overseas studying business in Lubeck, Germany. His work has appeared on financial outlets including CNBC.com and Forbes.com. You can follow Pedone on Twitter at www.twitter.com/zerosum24 or @zerosum24.

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