Swing Trade Ideas for Friday June 13: First Majestic Silver, Clovis, More

NEW YORK (TheStreet) -- Good day traders!

Today's top picks are First Majestic Silver  (AG), Clovis Oncology  (CLVS) and Halozyme Therapeutics  (HALO).

1. First, let's look at First Majestic Silver, which acquires, develops and explores mineral properties with a focus on silver projects in Mexico.

First Majestic trade up 3.38% on Thursday to $9.47 per share.

  • Thursday's range: $9.11 - $9.57
  • 52-week range: $8.19 - $16.46
  • Thursday's volume: 1,479,778
  • 3-month average volume: 1,062,250

Miners and metals made big moves on Thursday, so there are a lot of great charts within this sector. First Majestic is a rounded bottom breakout that needs to confirm today. Price action has been trading up since the stock hit its 52-week low of $8.19 a couple weeks ago.

Over the last few days, the share price has gapped up, confirming bullish sentiment. Now, shares are trading over the 50-day simple moving average. First Majestic has formed a bullish scoop pattern at a resistance level.

Look to enter this trade within yesterday's trading range, above the 34-day exponential moving average. There is also a surge in volume on the bullish move, which tells us that investors are interested in the long-term bull movement. Watch for increasing volume on the scoop breakout. I'd set a stop at about $8.95, which is just below the nearest-term resistance.

I'd target the 200-day simple moving average, which is at $10.63 and is 10% to the upside. There is overhead resistance at $9.63, $10-ish and again at the 200.

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

Next up: Clovis Oncology and Halozyme Therapeutics.

2. Now let's look at Clovis Oncology, a biopharmaceutical company focusing on acquiring, developing and commercializing anti-cancer agents in the U.S., Europe and the wider international market.

Clovis traded up 1.64% on Thursday to $44.52 per share. 

  • Thursday's range: $42.86 - $45.04
  • 52-week range: $36.11 - $93.33
  • Thursday's volume: 742,126
  • 3-month average volume: 939,719

Clovis is forming a pattern called the left/right combo, which is a 3-day candlestick signal. In this case, the first day's candle is a bullish candle, followed by a harami doji, followed by another bullish candle on the third day -- a bullish engulfing candle. (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, another chart pattern, the "pinball setup," is occurring.

This trade needs confirmation as the stock is in a clear downtrend, so watch for strength today and continued trading above the t-line.

The current bullish move started on June 4, when the chart formed a morning star doji. It has traded positive since then. Before that, there were a few gap-downs that will act as resistance on the upswing. Those resistance levels are $40.85 to $47.75 and $48.15 to $51.21.

With the pinball setup, the target is the 34-day simple moving average at $53.28. That is about 16% to the upside.

I'd set a stop below Wednesday's low of $41.11. Stay long until you see a confirmed sell signal or a close below the t-line. Enter and exit on strength.

3. Lastly, let's look at Halozyme Therapeutics, a biopharmaceutical company that researches, develops, and commercializes human enzymes.

Halozyme traded up 7.56% on Thursday to $10.10 per share. 

  • Thursday's range: $9.58 - $10.33
  • 52-week range: $5.88 - $18.18
  • Thursday's volume: 4,140,093
  • 3-month average volume: 2,447,430

Halozyme looks good technically for several reasons. First, it has formed a doji gap-up yesterday. Second, there was a clear bottom formed during the last few months, and it gapped up several times. Then it formed a bullish engulfing/gap-up on June 5.

Yesterday, it formed a bullish signal called a "doji sandwich," where a doji is between two bullish candles. These are all great bullish signs by themselves, but together they tell me it's time to buy.

It would be great if shares opened a little cheaper, say at the t-line, at $9.15. But I would buy on any strength. Price action is within a gap-down that occurred on April 4, so there is resistance to the upswing. The gap-down level is $8.43 to $11.59, so there is resistance all the way to the 200-day simple moving average, which would be my target. The 200 is about 16% to the upside.

I would be glad with any gains on this, even if it is just a couple-day trade.

We trade to make money, so get out when the profit is there! If the trade continues to work, just get back in. There's no harm in taking profits. Stay long until you see a confirmed sell signal or a close below the t-line.

Good luck traders!

Come see me at my second home and sign up for the two-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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