I would avoid HDS or look for short-biased trades if after earnings it fails to trigger that breakout and then drops back below its 50-day at $20.99 a share with high volume. If we get that move, then HDS will set up to re-test or possibly take out its next major support levels at $19.55 to $18.99 a share. Any high-volume move below those levels will then give HDS a chance to tag its all-time low of $17.80 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.

RELATED LINKS:



Follow Stockpickr on Twitter and become a fan on Facebook.

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.

If you liked this article you might like

Photronics (PLAB) Stock Retreats After Q3 Earnings Miss, Downbeat Outlook

Trade These 7 Stocks Under $10 for Huge Profits

Insider Trading Alert - PLAB, FFIN And UAL Traded By Insiders

Insider Trading Alert - PLAB, ACTG And CP Traded By Insiders

Insider Trading Alert - QTWO, GME And PLAB Traded By Insiders