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, June 2 With Huge Gain Potential

2. Next, let's look at Theravance, a biopharmaceutical company, is engaged in the discovery, development and commercialization of small-molecule medicines primarily for the therapeutic areas of respiratory diseases, bacterial infections and central nervous system pain.

Theravance traded down 0.1% on Friday, closing down 5 cents to $28.65 per share. 

  • Friday's range: $28.23 - $28.99
  • 52-week range: $25.11 - $42.96
  • Friday's volume: 461,131
  • 3-month average volume: 989,456

Theravance is also a rounded bottom breakout after it closed above the 50-day simple moving average for the last two trading days. Price action has been consolidating for the last week, so watch for a breakout of these levels on Monday, above Friday's high.

Theravance reported earnings on May 6, then traded to its 52-week low. It's now up 14% from that low. I'd look for an entry above the 50 on strength, above $28.32. I'd set a stop at about $27.89, which is a bit tight. But set the stop according to your risk tolerance.

As with all rounded bottom breakouts, I target the 200-day simple moving average first, which is a big upswing of almost 22% from Friday's close. There is some overhead resistance, but the most compelling is at $34.06, which would also be a good target of 18% to the upside. There is declining volume on bearish days, which tells me that investors are looking for the bullish moves over the bearish moves.

This trade may consolidate for a few more days before the breakout, so stay long until you see a confirmed sell signal, or a close below the t-line.

3. Now, let's look at Ventrus Biosciences, a development-stage specialty pharmaceutical company focusing on the late-stage development and commercialization of gastrointestinal products in the U.S.

Ventrus traded lower on Friday by 1 cent, down 0.79%, and closed at $1.26 per share.

  • Friday's range: $1.14 - $1.31
  • 52-week range: $0.85 - $4.69
  • Friday's volume: 1,306,784
  • 3-month average volume: 596,155

Ventrus is a small-cap stock, which can be more dangerous than the larger cap stocks, so watch out for that. Plus it's a penny stock, which adds even more risk. 

I like Ventrus because of its current gain potential. It is also a rounded bottom breakout.

Ventrus has been in a downtrend since it gapped down huge back in February, dropping 62%. Ouch. After that gap down, shares continued to trade lower, reaching the stock's 52-week low after a poor earnings report on May 14. Now shares are trading back up with some bullish strength. On Thursday, volume was almost seven times the normalized volume, and the shares closed over the 50. On Friday, shares continued to trade above the 50, and again closed above the 50, confirming the breakout.

There is overhead resistance at Thursday's high of $1.42, and throughout the entire gap down in February. I'd set a stop at the 50-day simple moving average, and target the 200-day simple moving average, at $2.43.

Here is why I like this trade so much. There is a 92.5% upside potential to the 200-day simple moving average. Gains like this are why I am a trader. Remember, that price action never shoots up 92% in a day, so let this trade work. Move your stop up as the price rises, so you can secure your profits on the way up. Even if you targeted the bottom of the gap down at $1.62, that would still be almost 30%.

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

Follow me on twitter @aarongallaher, and Linkedin at Aaron Burt.

>>Read More: Krispy Kreme, Three Others Are Poised for More Volatility

>>Read More: Delta Boosts Order for the Newly Stylish Airbus A321

>>Read More: How to Trade Apple Ahead of Developer Conference, Stock Split

>>Read More: Coal Shares React Positively to EPA Emissions Rules

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.

2 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
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
SYM TRADE IT LAST %CHG
BGC $18.84 0.27%
THRX $16.81 1.10%
VTUS $14.45 1.76%
AAPL $131.70 1.60%
FB $80.05 0.90%

Markets

DOW 18,150.34 +108.80 0.60%
S&P 500 2,116.56 +12.36 0.59%
NASDAQ 5,074.4380 +41.6870 0.83%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs