Entropic, Rex Energy, Zynga Lead Thursday's Swing-Trading Picks

NEW YORK (TheStreet) -- Thursday's top trading picks are Entropic Communications  (ENTR) , Rex Energy (REXX) and Zynga (ZNGA) .

1. First, lets look at Entropic, a fabless semiconductor company that designs, develops and markets semiconductor solutions to enable home entertainment.

Entropic traded up 0.34% on Wednesday and closed at $2.95.

  • Wednesday's range: $2.84 - $3.02
  • 52-week range: $2.44 - $5.12
  • Wednesday's volume: 1,641,948
  • Three-month average volume: 751,173

Entropic's stock looks good technically, because it is in a rounded-bottom breakout. It has closed above the 50-day simple moving average for two days in a row, confirming the breakout. On Tuesday, shares gapped up over the 50-day simple moving average and had a trading range of about 10%. This week marks the first time shares have traded over the 50-day simple moving average since March. 

I'd look to enter this trade when the stock is at more than the 50-day simple moving average, which is at $2.82, and when it's no higher than Wednesday's close, which is at $2.95. I'd set my stop at about $2.76, which is at the 34-day exponential moving average. I would target the 200-day simple moving average at $3.71, which would mark is 25% gain. 

There is overhead resistance at about $3.06 and $3.30 before the 200-day exponential moving average. I would look for a sell signal at these levels, or look to add to this position on a break above these resistance levels. Stay long until you see a sell signal, or a close below the t-line.

2. Next, lets look at Rex Energy, an independent oil and gas exploration and production company in the Appalachian and Illinois basins in the U.S.

Rex traded up 1.25% on Wednesday, closing at $15.40.

  • Wednesday's range: $15.16 - $15.50
  • 52-week range: $12.38 - $25.17
  • Wednesday's volume: 1,429,084
  • Three-month average volume: 935,998

Rex Energy also formed a rounded-bottom breakout pattern, when it closed over the 50-day simple moving average on Monday. The stock met with resistance at the 50-day SMA, but it has cleared that moving average, which now will act as support. Rex looks like a great trade with tons of potential. Plus, there's not much resistance between Wednesday's close and the 200-day SMA.

I would look to enter this trade as low as $15, but I would also enter this trade on strength above Wednesday's close at $15.40  I would set a stop at $14.62, which is the 50-day simple moving average. I would look to target the 200-day simple moving average, at $17.81, which is 15% higher than Wednesday's close. 

There is overhead resistance at about $17.04, so watch for a sell signal at that level, but otherwise this trade is clear to the 200-day EMA. Stay long until you see a sell signal, or a close below the t-line.

3. Lastly, lets look at Zynga, which develops, markets and operates online social games as live services played on the Internet, social networking sites, and mobile platforms.

Zynga traded up 4.3% on Wednesday, closing at $3.15.

  • Wednesday's range: $3.02 - $3.15
  • 52-week range: $2.70 - $5.89
  • Wednesday's volume: 31,234,644
  • Three-month average volume: 18,061,300

Zynga cleared some near-term resistance Wednesday, and closed significantly higher than the major moving averages, and formed a marubozu candlestick signal. The marubozu implies clear bullish sentiment by opening and trading up all day, not trading below the open or above the close. Zynga has been trading sideways for months, offering some short-term trades but now looks to be moving over the sideways trading level. It closed over the 50-day simple moving average. 

I would look to enter this trade above $3.08. I'd set my stop at about $3.00. I will target the 200-day simple moving average, at $3.80, which would mark a 20% gain. There is overhead resistance at about $3.24 and $3.48, so watch for sell signals at these levels, and add to this position once these levels are cleared. Stay long until you see a sell signal or a close below the t-line.

Come see me at my second home and sign up for the two-week trial. You'll find a room with tons of professional traders who help each other learn and succeed.

At the time of publication, the author held no positions in any of the stocks mentioned.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.


TheStreet Ratings team rates ENTROPIC COMMUNICATIONS INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate ENTROPIC COMMUNICATIONS INC (ENTR) a SELL. This is driven by several 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 disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself."

You can view the full analysis from the report here: ENTR Ratings Report


TheStreet Ratings team rates REX ENERGY CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

"We rate REX ENERGY CORP (REXX) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and generally higher debt management risk."

You can view the full analysis from the report here: REXX Ratings Report


TheStreet Ratings team rates ZYNGA INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate ZYNGA INC (ZNGA) a SELL. This is driven by multiple 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 deteriorating net income, disappointing return on equity and generally disappointing historical performance in the stock itself."

You can view the full analysis from the report here: ZNGA Ratings Report

More from Opinion

The Good, the Bad, and the Unknowns of AI and Apple Watches

The Good, the Bad, and the Unknowns of AI and Apple Watches

Flashback Friday: Bye Bye FAANG

Flashback Friday: Bye Bye FAANG

Micron Slumps After Issuing Light Guidance: 7 Key Takeaways

Micron Slumps After Issuing Light Guidance: 7 Key Takeaways

Throwback Thursday: Let's Talk Tilray

Throwback Thursday: Let's Talk Tilray

Amazon's Reported Plans to Greatly Expand Its Cashier-Free Stores: 5 Takeaways

Amazon's Reported Plans to Greatly Expand Its Cashier-Free Stores: 5 Takeaways