Top Swing Trade Ideas for Thursday, Aug. 21: Alcoa, Sodastream, More

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

Today's top swing picks are Alcoa (AA) , IsoRay (ISR) and SodaStream (SODA) .

1. First, let's look at Alcoa, which produces and manages primary aluminum, fabricated aluminum and alumina. TheStreet Ratings has a buy rating on this stock.

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Alcoa traded up 0.4% on Wednesday, closing at $16.50.

  • Wednesday's range: $16.36 - $16.69
  • 52-week range: $7.68 - $17.22
  • Wednesday's volume: 13,097,682
  • Three-month average volume: 15,046,900

Alcoa looks good as a pullback opportunity. Shares had traded down to below the 20-day simple moving average and consolidated around the $16.20 area. Over the last couple of days, shares have inched up, and on Wednesday they closed above the 20-day simple moving average. Plus, Wednesday's price action formed a bullish engulfing signal, which is always a good candlestick signal to trade. We'll need to see confirmation Thursday, but even if Thursday sees the chart form a doji and shares consolidate above the 20-day simple moving average, this looks like a good chart to be in on the dip.

I would look to enter this trade above the 20-day SMA, anywhere above $16.45. I would prefer to buy on strength to the upside. I would set a stop at around $16.11. I would target the 52-week high at $17.22, but ultimately I think Alcoa is a great chart to let ride, as shares are up nearly 60% this year, with no signs of stopping.

Alcoa is a great chart to buy on the dips and take partial profits on at the top. Stay long until you see a sell signal or a close below the t-line.

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