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TheStreet Open House

Cloud Buys: Big Swing Trade Ideas for Friday, May 23

Stock quotes in this article: CSOD, HAE, NTAP

2. Haemonetics engages in the design, development, manufacture and marketing of automated blood-component collection devices and surgical blood-salvage devices in the U.S. and internationally.

Haemonetics traded positive on Thursday closing up .78% to $34.68.

  • Thursday's range: $34.26 - $34.79
  • 52-week range: $29.86 - $45.90
  • Thursday's volume: 436,110
  • 3-month average volume: 662,716

Haemonetics looks good, as it's been trading positively for the last 16 trading days, up almost 15% in as many days. This chart became a rounded bottom breakout on Monday when shares closed over the 50. Confirmation came on Tuesday, and it's continued to confirm as it's been trading over the 50 all week.

I'd like to see increased volume on the breakout, so watch for that today. The share price could use a little pullback, say back to the t-line at $33.68, and I would like an entry just above that level for a greater percentage to the 200-day simple moving average. Again, I would target the 200 for a 10% move to the upside.

I'd set a stop just below the 50-day simple moving average at $33.28. There is overhead resistance at a gap down that occurred on March 23. The gap-down resistance levels are $35.35 to $37.19, so it will take some strength to break through these levels.

Keep in mind that charts rise and fall. They aren't going to shoot straight to the 200, so let the trade work. Stay long until you see a confirmed sell signal or a close below the t-line.

3. NetApp engages in the design, manufacture and marketing of networked storage solutions. The company supplies enterprise storage and data management software and hardware products and services.

NetApp traded positive on Thursday, closing up 4.84% to $36.16 per share.

  • Thursday's range: $34.82 - $36.67
  • 52-week range: $33.34 - $45.96
  • Thursday's volume: 10,150,630
  • 3-month average volume: 5,091,690

NetApp reported positive earnings on Wednesday, gapped up yesterday and closed above the 50-day simple moving average. Plus, yesterday it had double the average volume on the breakout. This is what makes for a good swing trade.

Look for continued strength today and continued trading above the 50. I'd look for an entry around the 50 at $35.96, if possible, and I'd set a stop at yesterday's low of $34.82. I would target the 200-day simple moving average for almost 10% to the upside. There is overhead resistance at $37.80 and again at the 200.

Stay long until you see a confirmed sell signal or a close below the t-line. Let the trade work.

Good luck today -- and have a great Memorial Day weekend!

Follow me on twitter @aarongallaher

>>Read More: Bond Investors Bite Their Nails as Greece Votes in Euro Elections

>>Read More: UnitedHealth Is Just What the Doctor Ordered for Defensive Investors

>>Read More: Boeing Wants to Be More Like Apple in Its Strategic Planning

>>Read More: Dow, Russell 2000 Market Divergence -- Warning or Opportunity?

At the time of publication, the author held no positions in any of the stocks mentioned.

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.

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