If you're in the bull camp on BBY, 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 $44.66 a share (or Monday's intraday high if higher) with high volume. Look for volume on that move that hits near or above its three-month average volume of 5.89 million shares. If that breakout hits, then BBY will set up to enter new 52-week-high territory, which is bullish technical price action. Some possible upside targets off that breakout are $55 to $60 a share.

I would avoid BBY 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 $42 to its 50-day at $40.49 a share with high volume. If we get that move, then BBY will set up to re-test or possibly take out its next major support levels at $38 to $34 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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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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