NEW YORK (TheStreet) -- Good day, traders!
Today's top swing picks are FireEye
(FEYE - Get Report), Groupon
(GRPN - Get Report) and UTi Worldwide
(UTIW - Get Report).
1. First, let's look at FireEye
(FEYE - Get Report), which provides products and services for detecting, preventing and resolving advanced cybersecurity threats.
FireEye traded up 4.16% on Monday, and closed at $39.02 per share.
- Monday's range: $37.01 - $39.45
- 52-week range: $25.58 - $97.35
- Monday's volume: 5,297,922
- 3-month average volume: 6,726,750
FireEye looks good technically, as it is a rounded bottom breakout -- albeit without the 200-day simple moving average as a factor, since shares have only been publicly traded since Sept. 20, 2013.
Price action traded up 138% in the first five and a half months. The stock has since lost all those gains and is down 3% since the IPO. The share price found a bottom at around $27, and it is now steadily climbing from that bottom.
On Monday last week, price action closed over the 50-day simple moving average and continued to consolidate for the rest of the week. The charts formed a series of dojis. (A doji chart is a one-day chart with a stock price that opens and closes in almost the same spot, but may show a wide price range over the course of the day.) This allowed the moving averages to catch up.
Yesterday, FireEye had a good bullish day of trading, and price action closed over the previous consolidation levels. The stock formed a bullish engulfing signal. Plus, the 34-day exponential moving average crossed over the 20- and 50-day simple moving averages.
I'd look for an entry anywhere above yesterday's low, between $37.01 and $39.45. I'd set my stop below Friday's low of $36.04, as I wouldn't want it to close below this level.
There is overhead resistance at $40.80, $47.23, and $54.97-ish. Remember, resistance is an area rather than an exact price. I would target these resistance levels, with my first target at $47.23, which would be 21% to the upside. After that, I'd target each resistance level.
Stay long until you see a confirmed sell signal or a close below the t-line
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Up next: Groupon and UTi.
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