Another earnings short-squeeze prospect is grocery store player Supervalu ( SVU), which is set to release numbers on Thursday before the market open. Wall Street analysts, on average, expect Supervalu to report revenue of $3.88 billion on earnings of 10 cents per share. >>5 Stocks Under $10 Set to Soar The current short interest as a percentage of the float for Supervalu is very high at 16.8%. That means that out of the 197.07 million shares in the tradable float 33.59 million shares are sold short by the bears. If this company can deliver the numbers the bulls are looking for, then shares of SVU could easily explode higher post-earnings as the shorts jump to cover some of their bets. From a technical perspective, SVU 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 $4.93 to its recent high of $8.48 a share. During that uptrend, shares of SVU have been consistently making higher lows and higher highs, which is bullish technical price action. That move has now pushed shares of SVU within range of triggering a big breakout trade post-earnings. If you're bullish on SVU, then I would wait until after its report and look for long-biased trades if this stock manages to break out above its 52-week high at $8.48 a share with high volume. Look for volume on that move that hits near or above its three-month average action of 4.37 million shares. If that breakout hits, then SVU will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $11 to $12 a share. I would avoid SVU or look for short-biased trades if after earnings it fails to trigger that breakout and drops back below its 50-day moving average at $7.71 a share and then below more near-term support levels at $7.55 to $7.30 a share with high volume. If we get that move, then SVU will set up to re-test or possibly take out its next major support levels at $7 to $6 a share.