Swing Trading Picks to Watch This Week

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TrendAnalyzer analyzing key trends in the market. With a focus on identifying and interpreting market movements, TrendAnalyzer provides insightful updates and actionable insights to help investors understand and capitalize on emerging trends.
 

•  19 Jan 2025
 

It is time to look ahead at potential swing trading opportunities and several stocks showing promising technical setups that could offer profitable trades in the coming week. Below are some key names to watch based on their technical patterns, entry and exit levels, and risk management strategies. Let’s dive into these stocks, where chart patterns like cup-and-handle, double bottoms, and potential head-and-shoulders formations are setting up for strong moves.

$LITE – Lumentum Holdings has recently caught attention after receiving a double upgrade from Barclays, which has sent the stock higher. It is currently trading at $94.41, which has crossed the significant $94 resistance level. The stock has shown promise in its technical setup, with its support level firmly placed at $81.94. This is crucial, as it allows traders to use this level for stop-loss placement. If Lumentum holds above this support, it could continue its upward momentum, especially if it clears the next resistance around $98. The short interest has been on a decline, which indicates potential for bullish movement, as less pressure from short sellers can lead to price appreciation. Traders looking to enter might consider a break above $94.50 as confirmation, with an initial target of $98 and a stop-loss near $81.94 to manage risk.

$GH – Guardant Health recently announced preliminary Q4 revenue above estimates, which has sent the stock higher. Trading at $36.66, Guardant has a well-established support at $31.02, making this a key level to watch for a potential bounce. The stock has been showing signs of accumulation, with its trading volume consistently above average. If Guardant can maintain above $31 and build on its recent momentum, it could break the resistance at $38, leading to a potential move towards $42. A conservative entry would be around $37 with a target near $42, using the support at $31.02 as a reference for stop-loss placement.

$ENS – EnerSys has been upgraded by Oppenheimer, raising its outlook to outperform, which is boosting investor confidence in the stock. Trading at $98.26, EnerSys is currently moving near its previous highs, with no clear resistance in sight, making it an interesting candidate for a breakout. The stock has solid support at around $95, and it would be wise for traders to place stop-loss orders just below this level to manage risk. Given the favorable market conditions, if EnerSys can hold its ground, there’s a strong possibility it could test its all-time highs above $102. An entry around $98.50, targeting a price range of $102–$104, offers a good risk/reward profile.

$NEO – NeoGenomics has recently been on an upswing, reversing a CEO-related sell-off and showing strong long-term guidance for 2025. At $14.21, NeoGenomics is positioned at an interesting point, having tested its $12.63 support multiple times. This double-bottom pattern could indicate that the stock is building a solid base for a potential rally. The key resistance is seen near $18.36, and if NeoGenomics can break this level with volume, it could push to higher levels, potentially testing $20. An ideal entry would be near $14.50, with a target of $18.36 and a stop at $12.63 to manage risk effectively.

$SONY – Sony has recently been in the news for strategic shifts, including its canceling of two live-service games, which could influence investor sentiment. Currently trading at $20.64, Sony is consolidating within a range, with support at $19.82 and resistance at $22.40. This creates an interesting swing trading setup. If Sony can hold above $20.50 and break through resistance at $22.40, there’s potential for a quick move to test the highs. Entry near $20.50 with a target of $22.40 offers a solid setup, while placing a stop near $19.50 would help limit risk.

While technical setups like cup-and-handle, double bottoms, and head-and-shoulders patterns can be highly profitable, they should always be traded with discipline. Swing trading involves both the possibility of strong gains and the risk of quick reversals, so keeping a close eye on these levels and being prepared to act quickly is crucial.

As always, make sure to conduct your due diligence and adjust your positions based on real-time market conditions. These setups could be worth watching as the week progresses. Happy trading!