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TheStreet Open House

Big Swing Trade Ideas for Thursday, July 17: FedEx, Marathon, More

NEW YORK (TheStreet) -- Good day traders!

Today's top swing trade ideas are FedEx (FDX - Get Report), Marathon Oil (MRO - Get Report) and Southwestern Energy (SWN).

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1. First, let's look at FedEx, the worldwide mega shipping company.

FedEx traded up 1.63% on Wednesday, and closed at $154.38 per share.

  • Wednesday's range: $152.25 - $154.47
  • 52-week range: $101.95 - $154.50
  • Wednesday's volume: 1,334,052
  • 3-month average volume: 1,708,050

FedEx looks good from a technical standpoint, as it has been in a strong uptrend since the beginning of February -- up over 15% year-to date. Plus, the chart is a j-hook pattern that is already in progress. Yesterday's price action confirmed the j-hook, so look for continued bullish trading today. J-hooks are very common and can offer great earning potential.

FedEx's j-hook started on July 3, when it created a top. Then it pulled back and consolidated for a few days, and closed below the t-line. On Monday price action gapped up over the t-line, and closed over the t-line, testing it. Then on Wednesday, the chart formed a bullish engulfing signal, piquing my bullish interest. Then, true to form, yesterday the stock gapped up and traded strongly to new highs. Yesterday's candle cleared the recent highs of July 3, which is the confirmation of the j-hook.

Today, look for an entry as cheap as the price action will allow. I'd like to have an entry within yesterday's trading range, as low as the t-line, which is at $151.92. As a short-term trader, I'd like to see a bit of a pullback to get a better entry.

I'd set my stop as low as the 34-day exponential moving average, at $147.89. I'd set my first target at the top of the current trading channel, then add to the position on pullbacks. Stay long until you see a confirmed sell signal, or a close below the t-line.

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2. Now let's look at the energy company Marathon Oil. The company's North America exploration and production segment explores for, produces and markets liquid hydrocarbons and natural gas in North America.

Marathon traded up 2.44% yesterday, and closed at $40.27 per share.

  • Wednesday's range: $39.64 - $40.27
  • 52-week range: $31.57 - $40.33
  • Wednesday's volume: 5,966,938
  • 3-month average volume: 6,284,200

Marathon looks good technically, as it is up 27% since February, and much of that percentage was achieved since May. Yesterday the chart formed a bullish "marubozu" candlestick. A morubozu candle is a candle with no top or bottom wicks -- and this is a textbook marubozu.

Think of the sentiment that this candle shape represents. The stock opens and trades up all day without pulling back all the way into the close.

Volume has been increasing for the last four trading days on the bullish move and doesn't have much strength or volume on bearish moves. Look for this chart to break above the recent high of $40.33, which would confirm a j-hook pattern.

I'd like to see a pullback today for a better entry, say above $39.65. I'd set a stop at $39.05, and move it up as the price action moves up. I would target the top of the current trend channel, and add to this position as it closes above the $40.33 level, then continue to add to the position on pullbacks. Stay long until you see a confirmed sell signal, or a close below the t-line. Let the trade work, and remember that the uptrend is still in effect until it is a confirmed downtrend.

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