Swing Trade Ideas for Monday, June 23: Globalstar, Westport Innovations, More

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

Today's top swing picks are Globalstar  (GSAT), Precision Drilling  (PDS) and Westport Innovations (WPRT).

1. First, let's look at Globalstar, which provides mobile voice and data communications services through satellite worldwide.

Globalstar traded up 3.02% on Friday, closing at $4.09 per share.

  • Friday's range: $3.80 - $4.12
  • 52-week range: $2.33 - $4.42
  • Friday's volume: 26,676,825
  • 3-month average volume: 4,224,410

Globalstar looks good technically, because it formed a bullish left/right combo pattern. The left/right combo is a doji or series of dojis, followed by a bullish engulfing signal. (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.)

And that's nicely bullish.

Think of what is going on with price action. First, there is a struggle between the bulls and bears, and price action doesn't move anywhere, forming the doiji. Then, price action gaps down the following day and trades back over the dojis, forming the bullish engulfing signal.

In other words, the bulls won the struggle.

Plus, check out Friday's volume: 26 million shares, compared to the average volume of 4.2 million. This adds to the bullishness of this chart. I'd say it's favored.

Globalstar has been in a strong bullish trend since April 2013, up 1,400% in that time. That percentage is striking -- to call it "huge" doesn't give it justice. The left/right combo is a pretty reliable signal, and when you see it on an already bullish chart, the probabilities are that much greater. Since price action pulled back to the t-line, I'd try to get an entry around the t-line, which is at $4.03. I'd set my stop at $3.70-ish.

As far as a target, I would just stay long on this chart until you see a confirmed sell signal, which hasn't happened in over a year. On this chart a confirmed sell signal would take several days for me to be convinced that price action was turning around. If you are a t-line trader, sell on a close below the t-line.

Up next: Precision Drilling and Westport Innovations.

2. Now, let's look at Precision Drilling, which provides energy services primarily to the North American oil and gas industry.

Precision Drilling traded up 1.36% on Friday, closing at $14.19 per share.

  • Friday's range: $13.97 - $14.27
  • 52-week range: $8.16 - $14.27
  • Friday's volume: 1,382,593
  • 3-month average volume: 2,036,910

Precision Drilling looks good technically, as it has formed the "traders' best friend" -- a doji followed by a gap up. When there is a doji or series of dojis, and then price action jumps up over those dojis, the result is similar to the left/right combo.

This is a battle for dominance between the bulls and bears. Then the battle is won by the bulls in a big way, and the stock gaps up.

Precision Drilling has been in an uptrend since February, and has trade up 65% in that time. Recently, price action cleared some long-term resistance levels, and the stock is trading strongly to the upside. It may trade lower for a few days, since price action is getting far from the t-line, and the averages need to catch up.

The stock will likely consolidate for a couple days before continuing the upswing, but the doji gap-up implies a bullish move today. Consolidation will let us get into this trade at a cheaper price, so that would be nice.

I'd look for an entry around the t-line, which is at $13.88. I'd set my stop at about $13.30, which is a few cents below the 20-day simple moving average, or 5% from Friday's close.

First, I would target the top of the current trend channel, which could be 10% to the upside, depending on your entry. Next, I would target the 5-year high of $18.18, which is 21% to the upside.

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

3. Lastly, let's look at Westport Innovations, which provides low-emission engine and fuel system technologies for gaseous fuels.

Westport traded lower on Friday by 0.97% and closed at $16.32 per share.

  • Friday's range: $16.01 - $16.46
  • 52-week range: $12.42 - $35.40
  • Friday's volume: 495,879
  • 3-month average volume: 962,625

Westport looks good technically, as it traded lower and is offering a lower entry.

The chart has also formed a bullish "W" pattern and cleared the breakout level last Monday.

Plus, this chart formed another bullish signal, the bullish "kicker." This forms when price action gaps lower, then trades back up and the candlestick has no lower wick, which shows there is no selling pressure -- all buying pressure. The kicker is considered one of the top bullish signals.

I'd look for an entry above the t-line, which is at $16.04. I'd set my stop at about 3.92% to the downside, at $15.77-ish from Friday's close. My first target would be the 200-day simple moving average, which is 16% to the upside. The only real resistance to speak of before the 200-day simple moving average is at $17.44. The next target could be at $19.90 to $20.00. Beyond that, just watch for resistance levels, and trade to the next one as the trade continues to work.

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.

Calpine Sees Risk to Geothermal as Green Energy Grows

Time for Nike and Under Armour to Pay College Athletes

Lululemon, eBay and Staples: 3 Retailers United Under a Red Flag

Smith & Wesson and Coach: High Hopes and Low Expectatations

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.

If you liked this article you might like