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TheStreet Open House

Swing Trade Ideas for Tuesday, June 24: FireEye, Groupon, More

NEW YORK (TheStreet) -- Good day, traders!

Today's top swing picks are FireEye  (FEYE)Groupon  (GRPN) and UTi Worldwide  (UTIW).

1. First, let's look at FireEye (FEYE), 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.

U.S. World Cup Is an Iffy Investment

Here's What We Think We Know About the Next iPad

Up next: Groupon and UTi.

And don't forget to 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.

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