2. Now let's look at Medidata Solutions, which produces cloud-based clinical development solutions for life sciences in the U.S. and internationally.
Medidata traded positive on Tuesday, closing up 3.69% to $41.17 per share.
- Tuesday's range: $39.85 - $41.58
- 52-week range: $32.10 - $68.21
- Tuesday's volume: 734,850
- 3-month average volume: 1,054,850
Medidata is a rounded bottom breakout -- a chart pattern that keeps on giving. The rounded bottom breakout keeps trading down, forming a bottom, testing that bottom, then trading above the bottom levels that were previously formed. Then, the price action moves over the 50-day simple moving average, triggering my interest.
With this chart, shares traded down, formed a bottom, rose above those levels and consolidated. Now price action has closed above the consolidation levels and the 50-day simple moving average.
This trade needs to see a little follow-through today, but it is in a clear uptrend from from a short-term viewpoint. I'd look for an entry above the 50-day simple moving average at $40.34. I'd set a stop below Monday's low of $38.67.
I'd ultimately target the 200-day simple moving average, which is at $52.53. Trading to the 200 SMA would be a 27% trade to the upside. You could also just trade to one of the near-term resistance levels of, say, $47.80 for 15% to the upside.
Great potential in this chart!
Stay long until you see a confirmed sell signal or a close below the t-line.
3. Lastly, let's look at Twitter, the global platform for narcissistic instant self-expression.
Twitter traded down a penny on Tuesday, closing at $38.02 per share.
- Tuesday's range: $37.30 - $38.55
- 52-week range: $29.51 - $74.73
- Tuesday's volume: 30,136,891
- 3-month average volume: 23,684,600
Twitter looks good, and people are tweeting about it. Technically, this chart looks good, and is a rounded bottom breakout-type signal. It's not a true rounded bottom breakout, because there is no 200-day simple moving average, since Twitter is new to the publicly trading arena.
Twitter traded down to its all-time low of $29.51, bounced back up, then traded back down to test the lowest close of $30.50. Now shares are trading 24% above that low in only 14 trading days. I'd hope for a little pullback today to offer a better entry level -- a pullback opportunity.
I think that an entry above $35.96 would be great. I'd set a stop $34.68-ish, and I'd target some resistance levels. The overhead resistance levels of interest are $46.05 and $50.02, which is 21% and 31% up, respectively.
Stay long until you see a confirmed sell signal, or a close below the t-line.
Good luck traders, as luck favors the prepared. Also, be mindful of the Fed announcement that comes out today. You never know what might happen.
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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.