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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Top Swing Trade Ideas for Monday, June 16: Cree, Isis, More

2. Now let's look at Financial Engines, which provides independent, technology-enabled portfolio management services, investment advice and retirement income services to participants in employer-sponsored defined-contribution plans in the U.S.

Financial Engines traded up 2.38% on Friday, closing at $47.25 per share.

  • Friday's range: $45.31 - $47.38
  • 52-week range: $37.14 - $71.08
  • Friday's volume: 396,698
  • 3-month average volume: 569,165

Financial Engines was a rounded bottom breakout on Friday, June 6, and has been confirming and consolidating since. On Friday, the ultimate confirmation happened when the 34-exponential moving average crossed over the 50-day simple moving average. Plus, price action moved over the recent consolidation levels. Additionally, volume is increasing on the upswing, which tells us that the investor sentiment is behind the bullish move.

Now we should look for the breakout.

I'd look for an entry as cheap as possible, anywhere between the 50-day simple moving average at $43.74, to Friday's close at $47.25. I'd set a stop at about $41.20, which is at the bottom of a gap-up that happened on June 5. I'd target the 200-day simple moving average at $56.23, which is almost 19% from Friday's close.

There is overhead resistance at $47.70, $49.69, $53.05, and then again at the 200-day simple moving average, so let it consolidate at these levels.

Stay long until you see a confirmed sell signal or a close below the t-line. Before exiting the trade, ask yourself, "Would I buy at this level?" This question has kept me from selling prematurely on countless occasions.

3. Lastly, we'll look at Isis Pharmaceuticals, which is engaged in the discovery and development of antisense drugs using a novel drug discovery platform.

Isis traded up 4.31% on Friday, closing at $33.63 per share. 

  • Friday's range: $31.34 - $33.70
  • 52-week range: $20.52 - $62.66
  • Friday's volume: 2,727,307
  • 3-month average volume: 2,743,820

Isis is back on the buy list, as it formed a  bullish engulfing signal on Friday at a support level. I recommended Isis as a buy on May 27, and the stock has traded up almost 17% since then.

Now, there was a little pullback which offered us an opportunity to add to the position. On Tuesday of last week there was a doji gap-up, which has huge bullish  implications, so look for this trade to continue to break. (A doji chart has a stock price that opens and closes in almost the same spot, but it may be wide-ranging in price over the course of the day.) Plus, the 34-day exponential moving average crossed over the 50-day moving average on Friday, confirming the continuation.

This trade is going places, so don't be left behind.

I'd look for an entry on any strength, anywhere above the 50, which is at $30.18. I'd set a stop below the upward channel, as low as the 20-day simple moving average at $28.90. My first target would be the 200-day simple moving average, at $37.87, which is 12.5% from Friday's close. This trade will likely trade well above the 200, so maybe just take partial profits there, and look to add to the position on the next pullback. 

The next target would be at the next resistance level, at about $39.66, then $41.64, and so on. Stay long until you see a confirmed sell signal or a close below the t-line.

Come see me at my second home and sign up for the two-week trial. You'll find a trading room with tons of professional traders who help each other learn and succeed.

Congress Readies Hearings on AT&T, DirecTV Tie-up

Medtronic to Pay $43B for Ireland's Covidien

5 Reasons So Many Seniors Fall Victim to I.D. Theft

Fusion-io Soars Following SanDisk Buyout

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

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!
DOW 16,960.57 -123.23 -0.72%
S&P 500 1,978.34 -9.64 -0.48%
NASDAQ 4,449.5640 -22.5440 -0.50%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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