Swing Trade Ideas for Thursday, June 12: Pandora, Volcano, More

NEW YORK (TheStreet) -- Good day traders!

Today's top picks are Pandora  (P), Primero Mining  (PPP) and Volcano  (VOLC).

1. First, let's listen to Pandora, the Internet radio company.

Pandora traded up 4.93% on Wednesday, closing at $26.59 per share.

  • Wednesday's range: $25.02 - $26.82
  • 52-week range: $14.43 - $40.44
  • Wednesday's volume: 10,494,230
  • 3-month average volume: 10,860,400

Pandora has been playing a sad song and having some trouble. It has had unfavorable news in the past. Now that the dust has settled, shares are on the way back up.

On Wednesday the chart formed a bullish engulfing signal and closed over the recent consolidation level. The price action has been trading down for the last three months, pulling back over 30%.

Yesterday, shares closed over the 50-day simple moving average for the first time in months -- and with gusto. Plus, yesterday's close was over the near-term resistance levels. Right now, the share price is in the middle of the gap-down that occurred after the earnings report on April 24.

The gap-down will act as resistance until the gap is closed. Those resistance levels are $25.50 to $28.20. After the gap, there is resistance at $29.29, $32.12, then again at about $34.

I would look for an entry within yesterday's trading range, but I'd prefer share price to remain above the 50 at $25.63.  I'd set a stop below Tuesday's low of $24.84, say $24.80. I would target first resistance level of $29.29, which is 10% to the upside. Then, I'd look for the next resistance level, and keep moving my stop up as shares trade higher.

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

Up next: Primeo Mining and Volcano.

2. Now let's look at Primero Mining, a precious metals producer. Primero is engaged in the acquisition, exploration, development and production of precious metal properties in Canada and Mexico.

Primero Mining traded up 4.21% on Wednesday, closing at $6.93 per share. 

  • Wednesday's range: $6.65 - $6.95
  • 52-week range: $4.06 - $8.18
  • Wednesday's volume: 501,214
  • 3-month average volume: 847,086

Primero mining looks good technically, as the price action gapped up after a doji. (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.) You could simply trade the doji gap up and be very successful. Plus, it was a morning star doji gap up, which has even more bullish sentiment.

The current bullish push started when the chart formed a bullish piercing candle on June 2. Yesterday, price action closed over the most recent high, forming a j-hook pattern. Look for the j-hook breakout today.

I would look for a cheaper entry today within yesterday's range, and set a stop at about $6.39. I would target the 52-week high of $6.95, which could happen pretty quick with a j-hook in play. The 52-week high is about 18% to the upside, which would be a great little short-term trade. There is a little resistance at $7.28, but other than that, it is clear to the top. 

This is a great-looking trade for a relatively inexpensive stock that has increasing volume on the bullish move. Stay long until you see a confirmed sell signal, or a close below the t-line.

3. Lastly, let's look at Volcano, a maker of sonic-based medical devices.

Volcano traded up 0.16% on Wednesday, closing at $18.22 per share.

  • Wednesday's range: $17.98 - $18.32
  • 52-week range: $16.54 - $24.62
  • Wednesday's volume: 586,675
  • 3-month average volume: 736,245

Volcano is a rounded bottom breakout that needs to confirm today or tomorrow. Yesterday, shares closed over the 50-day simple moving average, but just barely. Look for bullish strength today, as shares continue to trade over the 50 -- and this trade needs to close above the 50.

There are all sorts of bullish signals on this chart. First, a bottom was established at $16.54, which is the 52-week low, and it was retested several times. Then, a bullish engulf signal was formed, followed by a pullback to a higher low. Then it formed a bullish doji gap up, traded up, then pulled back to a higher low. We saw another bullish engulfing signal, and the stock is now consolidating above the 34-day exponential moving average. Now it's slightly above the 50.

Time to look for an entry.

I'd like to have an entry above the 34-day exponential moving average at $18.02. I'd set a stop at about $17.14, which is below the recent highest low. As with all rounded bottom breakouts, target the 200-day simple moving average. The 200 is 15% to the upside from yesterday's close. There is overhead resistance at about $19 and $20.53. 

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

Good luck traders!

Come see me at my site and sign up for the 2 week trial. You'll find a trading room with tons of professional traders who help each other learn and succeed.

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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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