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
TheStreet Open House

Top Swing Trade Ideas for Tuesday, August 5: Darden Restaurants, Medidata, More

Stocks in this article: DRIMDSOZBRA

NEW YORK (TheStreet) -- Good luck traders!

Today's top swing trade picks are Darden Restaurants (DRI), Medidata Solutions (MDSO) and Zebra Technologies (ZBRA).

Read More: A Simple Options Trading Strategy That Beats the S&P 500

1. First let's look at Darden Restaurants, which owns and operates full-service restaurants in the U.S. and Canada under the Olive Garden, Red Lobster, LongHorn Steakhouse, Capital Grille, Yard House, Seasons 52, Bahama Breeze, Eddie V's Prime Seafood and Wildfish Seafood Grille brand names.

Darden Restaurants traded up 2.57% on Monday, closing at $47.86 per share.

  • Monday's range: $46.55 - $47.94
  • 52-week range: $43.56 - $54.89
  • Monday's volume: 2,779,797
  • 3-month average volume: 1,567,580

Darden looks good because yesterday created a two-candlestick pattern called a doji gap up, often referred to as the trader's best friend. The doji gap up is starts with a battle between the bulls and bears, thereby forming a doji. Then, the following day, price action gaps up over the previous day's close and forms a bullish candle.

Plus, yesterday's price closed over the 50-day simple moving average, piquing my interest as a rounded-bottom breakout.

Since the beginning of the current short-term bullish trend, volume increases on bullish days, which tells us there is strength behind the positive trend, and volume decreases on bear days -- meaning there's no strength.

Read More: Disney, Groupon, Tidewater, Take-Two Continue Stream of Earnings

I'd look for an entry above the 50-day simple moving average, above $47.36. Today should offer a price within yesterday's trading range. I'd set my stop at $46.88, which is the pre-gap high. Then, I'd target the 200-day simple moving average, which is only up 4%, and look to add to the position as it clears the 200. Then target the overhead resistance levels, and ultimately target the 52-week high of $54.89 -- 14.6% to the upside from yesterday's close.

Stay long until you see a confirmed sell signal or a close below the t-line.

Next up: Medidata Solutions and Zebra Technologies.

1 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 16,380.41 +263.17 1.63%
S&P 500 1,886.76 +24.00 1.29%
NASDAQ 4,258.4380 +41.0480 0.97%

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