Swing Trade Ideas for Monday, June 9: Chart Industries, KBR, More

NEW YORK (TheStreet) -- Good day traders!

Today's top swing pick ideas are Chart Industries  (GTLS), KBR  (KBR) and PulteGroup  (PHM).

1. First let's look at Chart Industries, which manufactures and sells engineered equipment for the production, storage and end-use of hydrocarbon and industrial gases worldwide.

Chart Industries traded positive on Friday, up 3.81%, and closed at $74.26 per share.

  • Friday's range: $72.66 - $75.81
  • 52-week range: $64.05 - $130.85
  • Friday's volume: 655,211
  • 3-month average volume: 480,559

Chart Industries looks good from a technical standpoint. It closed over the 50-day simple moving average on Friday, triggering a rounded bottom breakout buy signal.

This chart has tried to close over the 50 a few times this year, but has failed to do so several times. So we'll need to see some follow-through today and tomorrow.

Confirmation will come in the form of increased buying pressure over the 50 and a close over $76.27, which is the near-term high.

Chart Industries has been in a downtrend since October, when it formed a double top. It has traded down 55% since then. Now it is in a moving average squeeze, where Friday's candlestick engulfed the moving averages. The stock is trading up off of a double bottom that has formed over the last 12 trading days. Plus, there are other other bullish signals, like a doji gap up and a small bull-kicker. (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.)

I would look for an entry above the 50-day simple moving average, above $74.48. I would set a stop just below the double bottom level of $70.47. My first target would be the 200-day simple moving average at $94.20, which is about 25% to the upside.  

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

2. Now let's look at KBR, which operates as an engineering, construction and services company worldwide.

KBR traded up 1.81% on Friday, closing at $25.93 per share.

  • Friday's range: $25.41 - $26.05
  • 52-week range: $22.48 - $36.70
  • Friday's volume: 1,881,787
  • 3-month average volume: 2,370,370

KBR is a confirmed rounded bottom breakout, as it has closed over the 50-day simple moving average for two days in a row. KBR is trading off of the 52-week low of $22.48, and it is up 15% from that low.

This chart is above breakout levels and should continue trading positively. For me, this trade will only be a three or four day trade. KBR is reporting earnings after market close on Thursday, and I don't like to hold over earnings. But do as you wish. Holding over earnings is too much like gambling, not trading.

I would look for an entry above the 50-day simple moving average -- even as low as the t-line, at $24.91. I'd set a stop at about $24.75, since this is a short-term trade. Again, I would target the 200-day simple moving average, which is 16% to the upside. There is strong resistance at $26.35, then more at $27.18. 

Stay long until you see a confirmed sell signal or a confirmed close below the t-line. I would not hold over earnings on June 12, unless you can handle the risk.

3. Now, let's look at PulteGroup, which engages in homebuilding and financial services businesses primarily in the U.S.

PulteGroup traded up 1.26% on Friday, closing at $20.13 per share. 

  • Friday's range: $19.91 - $20.18
  • 52-week range: $14.23 - $21.75
  • Friday's volume: 5,128,882
  • 3-month average volume: 6,291,090

PulteGroup is poised for a j-hook pattern, which has huge bullish potential. On Friday, shares closed over the j-hook breakout level, so look for continued bullish sentiment today.

This chart is funky, moves a lot and is very "wicky," which shows constant battling between the bulls and bears. PulteGroup is in a short-term uptrend after a correction. It is now trying to clear the March highs. The J-hook pattern can be quick and profitable, so look for continued strength today. Buy into pressure, and sell into pressure.

I'd look for an entry above $19.74. I'd set a stop loss at a close below about $19.39. I would target the two-year high, which is at $24.47, a 21% move to the upside from Friday's close. 

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

Good luck traders -- let's keep this five-year trend going!

Follow me @aarongallaher, and come see me here to find out more trade ideas.

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

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The author holds no positions in the stocks mentioned in this article. 

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