Big Swing Trade Ideas for Wednesday, June 4: First Solar, More

NEW YORK (TheStreet) -- Good day traders!

Today's top picks are First Solar (FSLR), RealPage (RP) and WisdomTree Investments (WETF).

1. First, let's look at First Solar, which provides solar energy solutions worldwide. The company operates through two segments, components and systems.

First Solar trade up 0.37% on Tuesday, closing at $62.93

  • Tuesday's range: $61.70 - $63.45
  • 52 week range: $35.59 - $74.84
  • Tuesday's volume: 2,192,036
  • 3-month average volume: 4,482,160

First Solar has been in a downtrend since reaching its 52-week high of $74.84, trading down 15%. Then, it appears to have found its bottom at $59.88. Yesterday, shares closed above the t-line and the 20-day simple moving average, and there was a t-line/20 cross.

Yesterday's chart formed a doji candle, which is a sign of indecision. (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.). Plus, when there is a doji, I like to watch for a gap up.

Look for a gap up today. When there is a gap up after a doji, this is a huge bullish signal, and the trend likely follows the gap after a doji. Also, this chart is forming a cup and handle formation, which is also a bullish candlestick signal that has big upside potential. All signs for a buy.

I'd look for an entry above the t-line and the 20-day simple moving average, say above $62.00. I would set a stop at about $60.80. I would target the 52-week high, which is 12% to the upside. The power and energy sectors have been working, so this trade will likely work in our favor. Stay long until you see a confirmed sell signal, or a confirmed close below the t-line.

Next up: RealPage.

2. Next, let's look at RealPage, which provides on-demand software solutions for the rental housing industry in North America.

RealPage traded up 62 cents on Tuesday to $21.69 for a gain of 2.94%.

  • Tuesday's range: $20.92 - $21.78
  • 52 week range: $15.40 - $26.34
  • Tuesday's volume: 413,839
  • 3-month average volume: 543,872

RealPage was a rounded bottom breakout on May 7, and this is a perfect example of what a rounded bottom breakout can do. Shares closed above the 50-day simple moving average on May 7, then traded straight to the 200-day simple moving average, for as much as 22% gain. Then, there was a slight pullback.

Now the chart has formed a "rising method," which is a multiday candlestick pattern. It will likely break out today. the breakout level is at yesterday's high of $21.78. The rising method engulfs the previous four days' candles, basically nullifying them.

There is overhead resistance at $22.50-ish, $24.00, and again at $25.71. I'd set a stop at a close of about $20.67. I'd target the 52-week high, and look to stay long on this one until it stops it's current bullish trend.

All signs say to stay long on RealPage: bullish sentiment, positive earnings. Plus it's forming higher highs and higher lows, it's consolidated on it's way up, and it shows volume decreases on bearish days. Great chart! 

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

3. Now, let's look at WisdomTree Investments, which operates as a sponsor and asset manager of exchange-traded funds (ETFs).

  • Tuesday's range: $10.87 - $11.45
  • 52 week range: $9.11 - $18.50
  • Tuesday's volume: 5,303,249
  • 3-month average volume: 1,516,070

WisdomTree is a rounded bottom breakout as of yesterday, when it closed above the 50-day simple moving average. The current pattern started when it formed a bullish hammer signal at the bottom of the downtrend, when it reached its 52-week low of $9.11. Hammer signals should always be carefully considered, especially when the following days are bullish, like they have been on this chart. Shares have traded up 25% in the last 11 trading days, since that 52-week low.

Bullish sentiment is here.

The overhead resistance is at $11.99, $12.38, $13.01, and then again at the 200-day simple moving average, at $13.45. I would set a stop at about $10.80, which is just below yesterday's low -- but set a stop on a close below that level, not intraday trading. I would have my first target be the 200-day simple moving average for about 15% to the upside.

I don't think it will stop there, so take profits and look to get back into this trade after reaching your first target. My next target would be about $14.45 for another 10% or so.

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

Come see me here today, and follow me on twitter @aarongallaher

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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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