NEW YORK (TheStreet) -- Good day traders!
1. First, let's look at the mega-awesome computer and phone manufacturer, Apple.
Apple traded up 1.20% on Monday, closing at $99.16
- Monday's range: $97.98 - $99.37
- 52-week range: $63.89 - $99.44
- Monday's volume: 46,471,236
- 3-month average volume: 53,710,300
Apple looks great at this level -- it is sitting right at a breakout level. Yesterday completed the two-candlestick signal, the doji gap-up. The doji gap-up is a great pattern to trade, as it has great upside potential. (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.) Shares are trading up after bouncing off the 50-day simple moving average on Aug. 8. The stock chart formed the perfect hammer candlestick signal, which told us that the bottom has been reached. Now I'd like to see a break above the 52-week high of $99.44.
My trade plan for Apple would be to enter a position as low as you can get in -- an inside day entry would be great, but unlikely. I like an entry between $97.53 and $99.16. I'd set a stop just below the t-line, at about $97.00. I will target the top of the previous trend channel, and look to add to my position on pullbacks like we are experiencing right now. Once the top of the trend channel is reached, I will take partial profits, and buy on the next dip.
Stay long until you see a confirmed sell signal or a close below the t-line.
2. Now, let's look at Amarin, a biopharmaceutical company focused on the development and commercialization of therapeutic products for the treatment for cardiovascular diseases in the U.S.
Amarin traded up 2.17% on Monday, closing at $1.86.
- Monday's range: $1.79 - $1.88
- 52-week range: $1.28 - $7.40
- Monday's volume: 3,536,338
- 3-month average volume: 1,948,880
Amarin looks like a good swing trade for its gain potential in a short period. Share price is up 46% from its 52-week low that was reached back in the end of May. Price action has been slowly and steadily trading up. Then it pulled back, and now it is trading over the major moving averages. Last Thursday, Amarin had a big day, trading up nearly 12%, then formed a couple of dojis, which is a nice continuation pattern and confirmation of the bullish trade. Yesterday formed a bullish engulfing signal, and will likely trade higher today.
Amarin is a penny stock, so a lot of folks don't care for trading these types of stocks, but this has great return potential.
My trade plan would be to enter a position between $1.75 and yesterday's high. I'd set a stop at about $1.70, which is the 200-day simple moving average. I would target the overhead resistance levels. Stay long until you see a confirmed sell signal or a close below the t-line.