Friday's Big Swing Trades: NiSource, PolyOne, Republic Airways

"The more that you read, the more things you will know. The more that you learn, the more places you'll go."
-- Dr. Suess

NEW YORK (TheStreet) -- Hello, traders! Today's big swing trade ideas are NiSource (NI), PolyOne (POL) and Republic Airways Holdings (RJET). 

1. First, let's look at NiSource, an energy holding company that provides natural gas, electricity and other products and services. It operates through three segments: gas distribution operations, Columbia Pipeline Group operations, and electric operations. NiSource traded positive on Thursday, closing up 1.93% to $37.02 per share.It is currently at $36, up 10% for the year to date.

  • Thursday's range: 36.35 - 37.17
  • 52-week range: 27.11 - 37.17
  • Thursday's volume: 2,437,167
  • 3 month average volume: 2,030,070

NiSource is an amazing chart -- and there aren't many charts like this anymore. It's good for swing traders and long-term investors alike. NiSource has been in a major uptrend since March 2009, like the overall market. NiSource has had so few major corrections.

NiSource reported positive earnings on Wednesday and shares traded up as a result. I would like an entry inside Thursday's candle, say between $36.35 and $37.15. Any entry below yesterday's high would be a good entry. Shares will likely consolidate for a few days since shares traded up to the top of the current trend channel Thursday. I'd set a stop as low as $34.84. I like to start with a quarter position, add and another to that position on strength, and on pullbacks. 

The sentiment is clear with NI. Stay long. Investors love it. Expect it to rise and fall with the market, and watch your profits grow. 

2. Next up is PolyOne. The company provides specialized polymer materials, services, and solutions with operations in specialty polymer formulations, color and additive systems, plastic sheet and packaging solutions, and polymer distribution. PolyOne traded positive on Thursday, closing up 0.48% to $37.65 per share. Shares are currently close to $39 and are up 10% for the year to date.

  • Thursday's range: 36.67 - 38.42
  • 52 week range: 22.00 - 39.28
  • Thursday's volume: 1,451,832
  • 3 month average volume: 872,769

PolyOne looks good from a technical standpoint because it formed a bullish "belt hold" Thursday -- a reliable candlestick signal. PolyOne is also one of those charts that has been in a major uptrend for a long time. The stock had a major correction in the end of 2011, pulling back roughly 40%. PolyOne has been in a steady uptrend since that correction.

I'd like to have an entry above the 34-day exponential moving average, at or just above $37.37. I'd set a stop at about $36.10.

PolyOne reported earnings on Wednesday and investors took profits in huge, unusual volumes. Then, on Thursday, shares gapped way down below the major moving averages and then traded back up. This trade needs to be confirmed Friday as the bulls were unable to push shares above the t-line, the eight-day exponential moving average. There is overhead resistance at about $38.14 and again at the 52-week high of $39.28.

Right now, shares are trading at the bottom of the trend channel, so it's a good time for an entry. Stay long until you see a confirmed sell signal. Target the top of the trend channel, take partial profits at the top, then add to the position as it pulls back, take profits at the top of channel and repeat.  

3. Third up is Republic Airways Holdings. Through its subsidiaries, Republic Airways provides scheduled passenger services on approximately 1,390 flights daily to approximately 118 cities in the U.S. and Canada. The company runs fixed-fee flights operated under airline partner brands, including American Eagle, Delta Connection, United Express, and US Airways Express. As of December 31, 2013, the company operated a combined fleet of approximately 258 aircraft. RJET trade positive on Thursday, closing up huge with a 9.99% gain, closing at $9.14 per share. At the current $9.30 shares are down nearly 13% for the year to date.

  • Thursday's range: 8.51 - 9.29
  • 52 week range: 7.82 - 13.92
  • Thursday's volume: 2,069,337
  • 3 month average volume: 653,897

RJET is a "rounded bottom breakout" that is setting up for large gains. RJET reported excellent earnings on Wednesday and investors raced in to buy, buy, buy in exceptional volumes. RJET appeared on my scanner as it traded over the 50-day simple moving average yesterday, and signaled a buy when it closed above the 50. Thursday had such big gains that it will likely pull back today. I'd like an entry just above the 50 SMA, say between $8.93-$9.14. I'd set a stop just below yesterday's low of $8.51, and raise my stop as shares continue trading higher. 

Target the 200-day simple moving average at $10.68, which will be a 16% gain from yesterday's close. There is overhead resistance at $9.35, $9.71 and $10.36, so watch for consolidation at these levels. Stay long until you see a confirmed sell signal, or a close below the t-line. 

Remember, rounded bottom breakouts are, by default, in a downtrend, so make sure you watch these closely. 

Other rounded bottom breakouts that are working are Carbonite (CARB), Jive Software (JIVE), BioScrip (BIOS), Neptune Technologies (NEPT) and Ntelos Holdings (NTLS).

Good luck traders, as luck favor the prepared!

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

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

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