NEW YORK (TheStreet) -- Good morning traders!

Today's top long picks are Dreamworks Animation (DWA) and Lions Gate Entertainment (LGF) .

1. First, let's look at the computer animation company, Dreamworks, known for movies like How to Train Your Dragon and the Shrek movies.

Dreamworks traded positive on Tuesday, closing up 2.99% to $26.55 per share.

  • Tuesday's range: $25.60 - $26.57
  • 52-week range: $20.78 - $36.01
  • Tuesday's volume: 1,080,046
  • 3-month average volume: 1,236,540

Dreamworks is a rounded bottom breakout. Yesterday shares closed over the 50-day simple moving average, triggering my interest. Today we need to see confirmation by seeing more buying strength, and another close above the 50.

I would look to buy this on positive trading, but since the overall market is faltering, I would give it some time this morning. There is positive sentiment in this chart, with waxing volumes for the last few days on positive trading. If you look at the last three trading days on a candlestick chart, the candles formed have no real top wick, which shows there isn't selling pressure at this level.

There is overhead resistance at the gap down on April 24. The gap down resistance levels are $26.86 to $27.79, and gaps always get filled eventually.

Above the gap, there is resistance at $28.85, then again at the 200-day simple moving average at $29.98. I'd target the 200-day simple moving average for a 13% return from yesterday's close. I'd set a stop below yesterday's low at $25.60.

This trade need confirmation today, and I'll lose interest if it trades back below the 50, but real confirmation will be at the close. Stay long until you see a sell signal, or a close below the t-line.

Remember, it's not bad to get stopped out and get back in if the trade is working.

2. Next, let's look at another movie company, Lions Gate, known for movies like The Hurt Locker, Monster's Ball and Crash.

Lions Gate traded positive on Tuesday, closing up 4.56% to $27.52 per share.

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  • Tuesday's range: $26.32 - $27.61
  • 52-week range: $24.54 - $37.81
  • Tuesday's volume: 2,106,222
  • 3-month average volume: 2,418,870

Lion Gate is also a rounded bottom breakout, and looks good from a technical standpoint. The chart has been trading sideways for the last two months, not really going anywhere. Yesterday, shares closed right at the top of the sideways trading channel, so I'd like to see followthrough to confirm this trade. Any positive trading above the current level is considered a breakout above the two-month trend channel.

The next overhead resistance levels are $28.29, $29.56, $30.50, and again at the 200, which is at $31.56. I would target the 200 at $31.53, which would be 14% from yesterday's close. Set a stop below the 50 at $27.12. Stay long until you see a sell signal, or a close below the t-line. 

Don't be afraid to take profits at 1%, 2% or 5%, since we are trading for profits, and it is still better than returns from a bank account, or stuffing your money under your pillow. Set your stops and don't worry about getting stopped out, as that's what stops are for.

Profits come first, above all else, that's why we do it.

Have a great day, and good luck in this crazy choppy market!

Follow me @aarongallaher

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At the time of publication, the author held no positions in any of the stocks mentioned.

Follow @aarongallaher

This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.