Big Swing Trade Ideas for Tuesday, June 17: Tesla, Ford, More

NEW YORK (TheStreet) -- Good day, traders!

Today's top picks are American Eagle Outfitters  (AEO), Ford Motor (F) and the market darling Tesla Motors  (TSLA).

1. First, let's look at American Eagle Outfitters, which operates as a specialty retailer of clothing, accessories and personal care products in the U.S. and internationally.

American Eagle traded up 2.92% on Monday, closing at $11.64 per share.

  • Monday's range: $11.27 - $11.66
  • 52-week range: $10.12 - $20.12
  • Monday's volume: 4,332,361
  • 3-month average volume: 5,025,610

American Eagle is a rounded bottom breakout, and has closed over the 50-day simple moving average for two days in a row. American Eagle has tried to complete a rounded bottom breakout in the recent past, but has failed and continued the downtrend.

There needs to be continued bullish strength for you to want to enter this trade today. There is some overhead resistance at $11.80, $12.11, $12.80 and then again at the 200-day simple moving average. I would suggest an entry within yesterday's candlestick range, between $11.27 and $11.66. I'd set a stop at about $11.09.

I would target the 200-day simple moving average for 16% to the upside. Stay long until you see a sell signal, or a close below the t-line.

2. Now, let's look at the American car manufacturer Ford Motor.

Ford trade up 0.42% on Monday, closing at $16.63 per share.

  • Monday's range: $16.38 - $16.68
  • 52-week range: $14.30 - $18.02
  • Monday's volume: 22,219,572
  • 3-month average volume: 27,499,600

Ford looks good technically, as yesterday the chart formed a bullish engulfing signal, which is one of the most reliable candlestick signals. Plus, it formed a bullish left/right combo signal, a three candle formation that develops over three days. That occurs when there is a bearish candle one day, followed by a bullish harami the next day, followed by a bullish engulfing candle on the third day. Also, price action bounced off of the 20-day simple moving average, where it found support.

Look for Ford to trade up over the t-line. I'd look to enter at or above the t-line, which is at $16.68.

I'd set a stop just below yesterday's low of $16.38. I'd start with a one-quarter position and add to it when it clears the near-term resistance level of $17.08. Then, look for it to clear the 52-week high of $18.02.

I would target the 52-week high to start, then target the 5-year high at $18.97, which is about 12% to the upside. Stay long until you see a sell signal or a close below the t-line.

Coming up next: Tesla.

3. Lastly, let's look at a cult stock, Tesla, which makes those amazing cars that everyone wants.

Tesla traded up a whopping 8.81% and closed at $224.61 per share on Monday.

  • Monday's range: $206.27 - $225.49
  • 52-week range: $95.30 - $265.00
  • Monday's volume: 12,422,459
  • 3-month average volume: 6,797,840

Tesla has been in a downtrend since reaching its all-time high of $265. There has been consolidation since the end of May, but yesterday broke those levels in a huge way. I suspect that there will be a slight pullback today, within yesterdays trading range.

I would look for an entry above $215.48, a previous day's high. Now that Tesla has broken out, the public is going to flock to this trade. That was demonstrated by yesterday's volume, which was almost double the average volume.

This trade needs to be watched, in my opinion, as this stock acts crazy. But there is a ton of gain potential with Tesla.

I'd set a stop just below yesterday's low, at about $206.20. Enter and exit this trade on strength, and hold on for the ride. I would target the all-time high at $265, which is almost 18% to the upside.

Again, 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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