This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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 Thursday, August 7: First Solar, Pepsico, More

Stocks in this article: FSLRPEPTSLA

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

Today's top swing trade picks are First Solar (FSLR), Pepsico (PEP) and Tesla (TSLA).

Read More: What Apple CEO Tim Cook Means When He Promises iPad Innovation

1. First, let's look at First Solar, which provides solar energy solutions worldwide.

First Solar traded up 3.05% on Wednesday, and closed at $65.60 per share.

  • Wednesday's range: $60.15 - $65.94
  • 52-week range: $35.59 - $74.84
  • Wednesday's volume: 9,114,741
  • 3-month average volume: 2,970,850

First Solar looks good to me as a swing trade, as yesterday's volume was three times the normal trading volume. Also, the price action traded up over the 50-day simple moving average and closed over the 50-day SMA. Yesterday's candlestick engulfed many of the previous trading days, and closed right at the resistance level.

This is a trade that is the classic swing trade, since First Solar has been trading sideways since about March, and there's no reason to believe that sentiment has changed. As swing traders, we can play the swings in a sideways trading scenario.

I'd look to enter this trade above $65.31, which is the 50-day simple moving average to be safe. For those of you with a higher tolerance, I'd enter as low as the 20-day simple moving average, at $63.56, and trade it to the peak of the sideways trading channel. I'd set my stop just below the 20-day simple moving average, at say $63. My first target would be the top of the sideways trading channel, at $71.85, which is about 9.5% to the upside from yesterday's close.

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

Read More: Chevron, Exxon Highlight Up and Down Year in Oil Sector

2. Now let's look at the food and beverage giant, Pepsico.

Pepsi traded positive on Wednesday, closing up to $90.51 per share.

  • Wednesday's range: $88.67 - $90.76
  • 52-week range: $77.01 - $93.09
  • Wednesday's volume: 6,437,109
  • 3-month average volume: 4,079,340

Pepsico doesn't always satisfy, but it does right now -- and it looks good technically. Pepsico has been in a bit of a pullback for the last week or more. The price action pulled back below the 50-day simple moving average and is turning around.

There is a 3-day candlestick signal happening. First there is a bullish candle, followed by a doji-type candle, then followed by a bullish engulfing signal -- 3 bullish signs. (A doji chart has a stock price that opens and closes in almost the same spot, but it may be wide-ranging in price over the course of the day.)

Yesterday, Pepsi closed above the 20-day simple moving average, and it looks to be heading back to the bullish trend that started back in February. This is a pullback opportunity, and allows us to get a cheaper entry price on a chart that is in a solid uptrend.

Look for an entry around $90 or above. Then, I'd set a stop at about $89. Then, I'd target the top of the trend channel and take profits at the top of the channel, then add to the position on pullbacks. Eventually, Pepsico is heading to $100.

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

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 16,805.41 +127.51 0.76%
S&P 500 1,964.58 +13.76 0.71%
NASDAQ 4,483.7150 +30.9230 0.69%

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