NEW YORK (TheStreet) -- Good day traders!
1. First, lets look at Ivanhoe Energy, the heavy oil development company.
On Wednesday, Ivanhoe regained the minimum bid price compliance rule for the Nasdaq listing, and it shows with above average volumes.
Ivanhoe closed up 18.52% on Friday, closing at $1.92.
- Friday's range: 1.55 - 2.33
- 52-week range: 1.31 - 6.93
- Friday's volume: 4,679,280
- 3 month average volume: 400,473
Ivanhoe energy has been a great swing trade in the recent past. On Aug. 29, shares traded within a 110% trading range, and closed up nearly 52% on that day. In the days that followed, investors took their profits, and Ivanhoe traded back down 30%. These are huge percentages for just a few days. Keep this in mind if you choose to trade Ivanhoe, it fluctuates very fast, and you can win big or lose big, so manage the trade properly and set a sell stop.
From a technical standpoint, Ivanhoe is in a long term downtrend, without a doubt. Although, it appears that the sentiment is changing with the big moves it's had over the last few trading sessions. On Friday, shares traded back up over the 50-day simple moving average and formed a candlestick that "almost" engulfed the previous day's candle. Friday's candle also "almost" formed the fifth candle in a "rising method" candlestick signal. I say "almost" because I believe candlestick signals are not always textbook. Also, the chart has formed a flag type signal.
Additionally, Ivanhoe's volume is more than 11 times the 3 month average. Lastly, Ivanhoe is a rounded bottom breakout, one of my favorite chart patterns. These are all signs of good trade potential.
I'd look to enter this trade above the 50-day simple moving average at $1.89. I'd set a sell stop according to your own risk tolerance, but if it closes below Friday's candle I'd be out. I would target the 200-day SMA, which can be a 64% move to the upside. Stay long until you see a confirmed sell signal, or a close below the t-line.
I love the energy sector, as it offers a wide range of trade types, from quick to long-term moves.
2. Next we'll look at Bebe, the women's clothing and accessory store.
BeBe traded up 4.17% on Friday, closing at $3.00
- Friday's range: 2.75 - 3.02
- 52-week range: 2.61 - 7.03
- Friday's volume: 958,122
- 3 month average volume: 531,850
Bebe looks good as a swing trade for it's turn around potential. Bebe is in a downtrend, down 57% since reaching it 52-week high on March 7, but share are currently trading back over the 20-day and 50-day SMA. There has been a bottom developing over the last couple months around $2.80. The chart started a rounded bottom breakout on Aug. 21, then failed to breakout. The price is testing the $3.00 level now, and may trade sideways for a few days. Plus, the chart formed a bullish engulfing signal on Friday, and will likely trade higher this week.
I would look for an entry as low as $2.90, and trade it to the top of recent highs around $3.30. I would look to add to the position on a close above $3.30, or just take your 10% gain at $3.30 from Friday's close. If you get in around $3, and trade it to the 200-day SMA, that can be as much as 56%. The other targets could be the recent high of about $3.30, then $4 could a target. Stay long until you see a confirmed sell signal, or a close below the t-line.
3. Let's look at UTi Worldwide, which provides non-asset-based supply chain services and solutions worldwide. It operates in two segments, freight forwarding, and contract logistics and distribution.
UTi traded up 4.84% on Friday, closing at $11.04.
- Friday's range: 10.45 - 11.14
- 52-week range: 9.00 - 17.70
- Friday's volume: 3,573,421
- 3 month average volume: 1,220,370
UTi has been trading sideways since May. Trading between support at about $9, and resistance at about $10.30. On Thursday, shares gapped up then close up 10% from Thursday's open. Then, on Friday the bullish move continued. The share price is up 21% from Wednesday's close. Shares will likely pull back on Monday and/or Tuesday, and offer a cheaper entry price.
I look for an entry as low as the 50-day SMA, at $9.78, and as high as Friday's close of $11.04. The cheaper the entry, the better. My stop will depend on my entry, but I would close this trade on a close below the t-line (8-day exponential). I would target the 200-day SMA at $12.15, which is about 10% from Friday's close.
Stay long until you see a confirmed sell signal, or a close below the t-line.
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This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.
TheStreet Ratings team rates BEBE STORES INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate BEBE STORES INC (BEBE) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself." You can view the full analysis from the report here: BEBE Ratings Report