This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Big Swing Trade Ideas for Monday, May 12

NEW YORK (TheStreet) -- Good morning traders!

Today's top picks are Meritor (MTOR - Get Report)Halcon Resources (HK - Get Report), and Avanir Pharmaceuticals (AVNR).

1. First let's look at Meritor, which designs, develops, manufactures, sells, markets, distributes, services and supports integrated systems, modules and components to original equipment manufacturers and the aftermarket for the commercial vehicle, transportation and industrial sectors.

  • Friday's range: 13.23 - 13.67
  • 52-week range: 6.09 - 14.15
  • Friday's volume: 1,469,602
  • 3-month average volume: 1,314,550

Meritor is looking good at this level, as shares spiked after earnings on May 1. Shares have been consolidating since earnings, then retraced back to the t-line (8 exponential moving average, or 8 EMA).

The chart is forming a bullish flag signal, with a breakout level of about $13.70. Watch for increasing volumes on the breakout. I'd enter this trade on any positive strength. I'd start with a 1/4 position and add to this position above $14 on the confirmed breakout.

This chart also looks like it is setting up for a j-hook pattern, which can be very profitable -- as much as 17% or more.

Meritor is up over 30% since the start of 2014, and shares have more than doubled in the last year. Plus the company keeps reporting strong earnings.

Meritor looks to be holding strong, so get in while the strength is on its side.

Target the top of the current trend channel. I'd set a stop at about $12.75. Stay long until you see a confirmed sell signal or a close below the t-line.

2. Next up is Halcon Resources, an independent energy company. Halcon is engaged in the acquisition, production, exploration and development of onshore oil and natural gas properties in the U.S.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
HK $1.57 0.00%
MTOR $12.53 0.00%
AAPL $130.28 0.00%
FB $81.53 0.00%
GOOG $565.06 0.00%

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs