Facebook, Baidu: Swing Trade Ideas for Thursday, May 22

NEW YORK (TheStreet) -- Good morning traders!

Today's top swing picks are Baidu (BIDU), Blucora (BCOR) and Facebook (FB).

1. First, let's look at Baidu, which provides Internet search services mainly in China. The company offers a Chinese language search platform on its Baidu.com Web site that enables users to find relevant information online, including Web pages, news, images, documents and multimedia files, as well as various international products and services in local languages to users in other countries.

Baidu traded positive on Wednesday and closed up 3.50% to $163.97 per share.

  • Wednesday's range: $158.82 - $164.49
  • 52-week range: $88.08 - $189.34
  • Wednesdays' volume: 3,366,800
  • 3-month average volume: 4,937,020

Baidu is a great swing trading chart, as it has just enough volume to keep things interesting. Yesterday, Baidu gapped up a bit, and continued to trade positive throughout the day. Shares closed at the top of the sideways trading channel that it's been experiencing for a few months. Clearly there is strong resistance at yesterday's closing price, as price action is having a tough time breaking through this level.

Watch for Baidu to break this level today. I'd set a buy trigger at $165, which is just above the current trend channel.

I'd set a stop just below yesterday's low at about $158.62. There is overhead resistance at $168.18, $172.79, $179.10, than again at the 52-week high of $189.34. I'd target the 52-week high, but look to take profits at any of these resistance levels for 2.5%, 5.4%, 9.2% and 13% returns, respectively.

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

2. Next, let's look at Blucora, which operates a portfolio of Internet businesses in the U.S. and internationally. The company operates through three segments: search, tax preparation and e-commerce.

Blucora traded positive on Wednesday, closing up 2.96% to $19.50 per share.

  • Wednesday's range: $18.83 - $19.54
  • 52-week range: $16.65 - $30.12
  • Wednesdays' volume: 1,367,509
  • 3-month average volume: 763,566

Blucora is a rounded bottom breakout, one of my favorite chart patterns. Plus, Blucora reported excellent earnings on May 1, and has gained momentum after gapping down to its 52-week low. The share price is up more than 14% in the last 14 trading days, and yesterday's price action pushed it over the 50-day simple moving average.

Look for continued strength today, and more positive sentiment to the upside. I'd look to get into this trade with any strength. There is resistance between the current price and $20.

Once price action clears the $20 level, I'd consider it a breakout. There are a few gap-downs that need to be filled on the upswing, but just watch for consolidation on the way back up, and watch for sell signals.

I would target the 200-day simple moving average, which is 18.72% to the upside from yesterdays close. Stay long until you have confirmation that the long trade isn't working, set a stop around $18, and don't worry about  getting stopped out.

Watch the t-line, and close the long position if it closes below the t-line with confirmation.

3. Next, let's look at social media megacompany Facebook. Go check your newsfeed, post an update, throw in a picture of what you're having for breakfast, then go buy Facebook stock.

Facebook traded positive yesterday, closing up 3.3% to $60.49 per share.

  • Wednesday's range: $58.25 - $60.50
  • 52-week range: $22.67 - $72.59
  • Wednesday's volume: 58,352,763
  • 3-month average volume: 68,832,900

Facebook has been trading sideways for a couple of months after a minor downtrend, which tells me that the price isn't going to go much lower. Yesterday Facebook formed a nice bullish candle and closed over the 34-day exponential moving average.

Technically, the chart has formed a wedge pattern, and yesterday's candle broke above the wedge, telling me that price action will continue to rise today.

I'd like to get into this trade on any positive strength, and I'd set a stop at about $57.20. Target the 52-week high at $72.59, which is 16% to the upside. Stay long until you see a sell signal or a close below the t-line.

When you make a bunch of money trading Facebook, update your status and thank TheStreet for giving you the tip!

Good luck today! Let's get out there and push the market over these critical levels!!

Follow me on twitter @aarongallaher

>>Read More: JD.com IPO Largest-Ever for Chinese Company as Alibaba Looms

>>Read More: Why Facebook Gets Mobile Better Than Anyone Else

>>Read More: GM Needs to Do This Now to Avoid Bankruptcy

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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