Swing Trade Ideas for Wednesday, June 18: Medidata, DryShips, More

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

Today's top picks are DryShips  (DRYS), Medidata Solutions  (MDSO) and Twitter  (TWTR).

1. First, let's look at DryShips, the ocean transportation services for dry bulk and petroleum cargos as well as offshore drilling services. The company operates through dry bulk carrier, tanker, and offshore drilling segments.

DryShips traded up 3.54% on Tuesday to $3.51 per share.

  • Tuesday's range: $3.34 - $3.55
  • 52-week range: $1.65 - $5.00
  • Tuesday's volume: 9,798,838
  • 3-month average volume: 6,394,420

DryShips looks good from a technical standpoint, as it traded to form a bottom through April and May and is now starting to move. Back on April 30, the chart formed a bullish hammer candlestick and reached its 6-month low of $2.78. Then shares traded up above the t-line and tested the t-line for a month or so. DryShips kept tapping the low levels during interday trading. Then price action pulled back to test the low support level of $2.90.

On June 4, DryShips had a large bullish day, and the candlestick engulfed the previous month's candlesticks, which confirmed the bullish sentiment. This also implied that the stock will move higher. Price action traded up almost 22% from June 4's open.

Now shares are trading above the 200-day simple moving average. DryShips stock was consolidating until yesterday, when shares jumped up 3.54%. Yesterday's move cleared all near-term resistance levels. Now there is overhead resistance at $3.80, then again at about $4.00.

I'd look for an entry within yesterday's trading range, as to get it a little cheaper entry. I would set a stop as low as $3.20.

This chart has great potential. I would target the resistance levels I mention, but the ultimate target would be the 52-week high of $5, which is almost 30% to the upside. Now that's a great trade for a large cap stock, especially for one trading under $5. Stay long until you see a confirmed sell signal or a close below the t-line.

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Next up: Medidata and Twitter.

2. Now let's look at Medidata Solutions, which produces cloud-based clinical development solutions for life sciences in the U.S. and internationally.

Medidata traded positive on Tuesday, closing up 3.69% to $41.17 per share.

  • Tuesday's range: $39.85 - $41.58
  • 52-week range: $32.10 - $68.21
  • Tuesday's volume: 734,850
  • 3-month average volume: 1,054,850

Medidata is a rounded bottom breakout -- a chart pattern that keeps on giving. The rounded bottom breakout keeps trading down, forming a bottom, testing that bottom, then trading above the bottom levels that were previously formed. Then, the price action moves over the 50-day simple moving average, triggering my interest.

With this chart, shares traded down, formed a bottom, rose above those levels and consolidated. Now price action has closed above the consolidation levels and the 50-day simple moving average.

This trade needs to see a little follow-through today, but it is in a clear uptrend from from a short-term viewpoint. I'd look for an entry above the 50-day simple moving average at $40.34. I'd set a stop below Monday's low of $38.67.

I'd ultimately target the 200-day simple moving average, which is at $52.53. Trading to the 200 SMA would be a 27% trade to the upside. You could also just trade to one of the near-term resistance levels of, say, $47.80 for 15% to the upside.

Great potential in this chart!

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

3. Lastly, let's look at Twitter, the global platform for narcissistic instant self-expression.

Twitter traded down a penny on Tuesday, closing at $38.02 per share.

  • Tuesday's range: $37.30 - $38.55
  • 52-week range: $29.51 - $74.73
  • Tuesday's volume: 30,136,891
  • 3-month average volume: 23,684,600

Twitter looks good, and people are tweeting about it. Technically, this chart looks good, and is a rounded bottom breakout-type signal. It's not a true rounded bottom breakout, because there is no 200-day simple moving average, since Twitter is new to the publicly trading arena.

Twitter traded down to its all-time low of $29.51, bounced back up, then traded back down to test the lowest close of $30.50. Now shares are trading 24% above that low in only 14 trading days. I'd hope for a little pullback today to offer a better entry level -- a pullback opportunity.

I think that an entry above $35.96 would be great. I'd set a stop $34.68-ish, and I'd target some resistance levels. The overhead resistance levels of interest are $46.05 and $50.02, which is 21% and 31% up, respectively.

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

Good luck traders, as luck favors the prepared. Also, be mindful of the Fed announcement that comes out today. You never know what might happen.

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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