Swing Trade Ideas for Tuesday, May 20

NEW YORK (TheStreet) -- Good morning traders!

Today's picks are Tableau Software (DATA), Haemonetics (HAE) and HMS Holdings (HMSY) (PRGS).

1. First let's look at Tableau Software, which provides various business analytics software products in the U.S., Canada, and internationally.

Tableau traded positive on Monday, closing up 5.59% to $57.66 per share.

  • Monday's range: $54.03 - $58.18
  • 52-week range: $54.03 - $58.19
  • Monday's volume: 2,706,351
  • 3-month average volume: 2,094,710

Tableau looks good to me from a technical standpoint, as shares closed over the 20-day simple moving average yesterday. Tableau is a falling knife situation, as the share price has dropped 45% in the last 82 days, so be very careful.

The stock is going on my watch list for a potential buy today. I'd like to see continued positive sentiment today first, though.

Also, there are rumors around this stock of a takeover, and rumors can really change investor sentiment.

Technically, Tableau has stabilized at the current level, and looks like it has reached its bottom. Over the last 16 days, the chart has formed a doji -- a term for a chart shape that paints a picture of uncertainty, a battle between the bulls and bears. 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. In Japanese, doji means clumsiness, and that's how I look at the doji.

Yesterday, the Tableau chart formed a large bullish candle, and closed over the 20-day simple moving average. We need to see continued strength and increasing volumes on the breakout to enter this trade.

There is overhead resistance at around $59.00, $60.87, $63.35, $66.03 and then again at the 200-day simple moving average at $71.30. Watch for consolidation, a pullback, or continuation patterns at these levels. My first target is the 200-day simple moving average, which is almost 14% to the upside, but don't be afraid to take smaller profits on its way up.

I'd set a stop at just below the t-line at $55.93. Stay long until you see a confirmed sell signal, or a close below the t-line.

2. Next, let's look at Haemonetics, which engages in the design, development, manufacture and marketing of automated blood-component collection devices and surgical blood salvage devices in the U.S. and internationally.

Haemonetics traded positive yesterday, and closed up 1.11% to $33.82 per share.

  • Monday's range: $33.36 - $33.86
  • 52-week range: $29.86 - $45.90
  • Monday's volume: 311,108
  • 3-month average volume: 648,719

Haemonetics is a rounded bottom breakout, and yesterday shares closed over the 50-day simple moving average. We need to see followthrough today, with continued trading over the 50, and increased investor interest in the form of higher volumes.

This stock has pretty low volume, so it's a bit of a slow mover, but it has continued to rise since reaching its 52-week low on May 1. It formed a bullish engulfing signal at the bottom, and the share price is up 11% since then. 11% in the last 18 days is pretty dang good.

There is overhead resistance at the gap down that occurred on March 24, so there is resistance through the whole gap down. The gap down levels are $35.35 to $37.45, so look for the gap to be filled. My first target is the 200-day simple moving average at $38.73, which is 14% to the upside.

I'd set a stop just below yesterday's low of $33.36, as I wouldn't want it to trade below this level. stay long until you see a confirmed sell signal, or a close below the t-line.

3. Next, let's look at HMS Holdings, which provides cost-containment services to government and private health care payers and sponsors. The company's services include coordination of benefits and program integrity services.

HMS traded positive yesterday, closing up 5.17% to $18.20 per share.

  • Monday's range: $17.11 - $18.24
  • 52-week range: $15.10 - $26.77
  • Monday's volume: 843,897
  • 3-month average volume: 1,017,360

HMS is also a rounded bottom breakout, as it closed over the 50-day simple moving average yesterday. We need to see it confirm the breakout today with positive trading over the 50 and another close above the 50.

This chart also formed a bunch of dojis at the bottom, and the bulls ended up winning the battle. Now it's all bullish sentiment. The chart also appears to have formed a fry-pan bottom, or a slow curve pattern, and positive trading today will confirm the breakout. Fry-pans can be very profitable. Add a fried rounded bottom, and you've got yourself a profit omelet. Yum!

There is overhead resistance at $18.93, $20, $20.50, and at the 200-day simple moving average at $21.42. Target the 200-day simple moving average for a potential 18% profit. I'd set a stop at about $17. Stay long until you see a confirmed sell signal, or a close below the t-line.

"If you don't know who you are, the stock market is an expensive place to find out."
-George Goodman

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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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