This Day On The Street
Continue to site right-arrow
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

Dragons and Monsters: Swing Trade Ideas for Wednesday, May 21

NEW YORK (TheStreet) -- Good morning traders!

Today's top long picks are Dreamworks Animation (DWA - Get Report) and Lions Gate Entertainment (LGF - Get Report).

1. First, let's look at the computer animation company, Dreamworks, known for movies like How to Train Your Dragon and the Shrek movies.

Dreamworks traded positive on Tuesday, closing up 2.99% to $26.55 per share.

  • Tuesday's range: $25.60 - $26.57
  • 52-week range: $20.78 - $36.01
  • Tuesday's volume: 1,080,046
  • 3-month average volume: 1,236,540

Dreamworks is a rounded bottom breakout. Yesterday shares closed over the 50-day simple moving average, triggering my interest. Today we need to see confirmation by seeing more buying strength, and another close above the 50.

I would look to buy this on positive trading, but since the overall market is faltering, I would give it some time this morning. There is positive sentiment in this chart, with waxing volumes for the last few days on positive trading. If you look at the last three trading days on a candlestick chart, the candles formed have no real top wick, which shows there isn't selling pressure at this level.

There is overhead resistance at the gap down on April 24. The gap down resistance levels are $26.86 to $27.79, and gaps always get filled eventually.

Above the gap, there is resistance at $28.85, then again at the 200-day simple moving average at $29.98. I'd target the 200-day simple moving average for a 13% return from yesterday's close. I'd set a stop below yesterday's low at $25.60.

This trade need confirmation today, and I'll lose interest if it trades back below the 50, but real confirmation will be at the close. Stay long until you see a sell signal, or a close below the t-line.

Remember, it's not bad to get stopped out and get back in if the trade is working.

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!
DWA $24.20 0.00%
LGF $33.92 0.00%
AAPL $124.43 0.00%
FB $82.22 0.00%
GOOG $548.00 0.00%


DOW 17,776.12 -200.19 -1.11%
S&P 500 2,067.89 -18.35 -0.88%
NASDAQ 4,900.8850 -46.5560 -0.94%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs