Bath & Body Works: #PowerStocks Series Pick Of The Week (April 2026)

President Donald Trump has announced that the US is on track to meet its objectives for the war in Iran. The pause on US strikes against Iran's energy sites is set to expire on 7 Apr at 8am (GMT +8) unless a deal with Iran is reached. With the clock ticking and no signs of a deal reached, uncertainty is running high. Uncertainty is never welcomed by the market. Because of this, the US stock market is rocked and remains extremely volatile. Days with 2% moves happen almost daily. Are you concerned about your stock portfolio? While I don't think the downmove is going to end anytime soon, it's not a good idea to go gung-ho either. There's a time to be more aggressive, and the time isn't now. I'll continue keeping a lookout for weak stocks for a short swing trading opportunity. But before I analyze this week's stock pick, let's review last week's #PowerStocks pick: Copart (CPRT).

Review Of Last Week's Pick Of The Week

Copart (CPRT) was last week's #PowerStocks pick. It's the world's 2nd-largest car retailer, providing online auctions and vehicle remarketing services in North America, Europe, Brazil, and the Middle East. After a 17% drop earlier, its shares are resting. I expect its shares to resume falling within the week. What's the price area I think Copart's shares could fall to? Where do I plan to take profit at? Head over to my Telegram Channel to find out! Speaking of Telegram, my team and I will never ask you for your hard-earned money for "investments". I know and understand that the allure of high returns without effort is highly attractive. It breaks my heart when I hear of people falling for impersonation scams.

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Why Is Swing Trading Bath & Body Works (BBWI) Worth It?

Source: bbwinc.com/investors

Bath & Body Works is a well-known company selling body lotion, body cream, soap, and fragrances. The company has stores worldwide, in malls, airports, and more. Blessed with a big market capitalization of almost $4b, Bath & Body Works is 1 of the largest retailers in the world. While the shares of some big-market-cap companies suffer from lethargy, Bath & Body Works' shares tend to explode upwards consistently — each of its explosive downmoves measures between 4.4% and 47.8%. A pullback is here, presenting a potential swing trading opportunity to ride its next huge downmove. What's my game plan? Where's a favorable price area to buy its shares at? Continue reading to get the details. P.S. What if I told you that you could drastically gain control over your emotions of fear and greed, and master the stock market in a short amount of time? My team and I have worked tirelessly to help you achieve results fast. Click on the banner below to claim your stock course for free (limited time) now!

Performance Of US Stock Market vs Bath & Body Works (BBWI)

  What's the 1st thing I'd like to analyze from the chart above? The price trend of the shares of Bath & Body Works. Knowing its share price trend allows me to determine whether to look for a buying or shorting opportunity, as following its price trend will sharply increase my chances of profitability. Can you tell that Bath & Body Works' shares are in a steady, strong downtrend? Therefore, I'd like to find a shorting opportunity. What's the next step? I'll compare the performance of Bath & Body Works' shares against the overall market (aka S&P 500). A comparison will flesh out the weaker performer. If the S&P 500 is the weaker performer, then I wouldn't want to waste my time and money by shorting Bath & Body Works' shares, as I'm aiming for an outsized return. So, let's refer to the comparison chart again. Although the S&P 500 is also in a downtrend, its performance is stronger than Bath & Body Works' shares. Here are the statistics: In the past 3 months, the S&P 500 has fallen by 4.6% while the share price of Bath & Body Works slid by 8.2%, underperforming the S&P 500 by almost 2x! Great! I want to short the shares of Bath & Body Works. But are there more points to consider?

How Explosive Is Bath & Body Works (BBWI)?

Yes, there are more points to consider before buying its shares for an explosive swing trade. Since I plan to short its shares and capitalize on its next downmove, rather than sitting through its fluctuations, my holding period will be around a week or 2. Therefore, I want its shares to have the ability to explode downwards. Have the shares of Bath & Body Works been able to explode downwards consistently? I was left in awe while marking out its explosive upmoves. Bath & Body Works enjoys a big market capitalization of nearly $4b. Its shares are valued at around $19 each. Yet, its shares have been able to explode downwards 21 times in the past 11 months, with each upmove measuring between 4.4% and 47.8%! The shares of huge companies are usually more lethargic! Talking about market capitalization, I love it that Bath & Body Works enjoys such a big market capitalization because this provides an extra layer of security against manipulation. I don't wish to lose my hard-earned money to manipulation that could be easily prevented! Here comes the golden question: Is it time to short the shares of Bath & Body Works for an explosive swing trade?

Key Price Levels

As with many things in life, timing matters. The right thing done at the right time is the best thing that can happen. Buying or shorting any stock at the wrong time can result in significant losses and emotional distress. This will cause you to lose confidence, and you'll doubt yourself even when a fantastic trading opportunity arises straight from under your nose! So, is there a way to determine whether the time to short Bath & Body Works' shares is here? Yes! Here's how I do it - by uncovering the key price levels (also known as support and resistance zones) of Bath & Body Works' shares. And that's what I've done in the chart above. Having slid 19.7% in 2 weeks, its share price is pulling back. And this is great news! Seeing a resistance area around $18.80, I would like to see its shares open below $18.80 before shorting to catch its next explosive upmove. Here's a pro tip: Instead of staring at your screen, consider setting a price alert on your broker's platform to be notified so that you can spend precious time with your loved ones.

Which Instrument Should You Consider Using?

  Do you ever wonder about the instrument used to trade explosive stocks? With 3 main trading instruments available - stocks, contract-for-difference (CFD), and options, you wonder which suits you best. Since stocks (as an instrument) is easy to understand, I shall focus on CFD and options. Here are the main similarities and differences: CFD works like a mirror to stocks. When a stock rises $1, its CFD rises $1. However, due to its unique pricing mechanism, your options price doesn't rise by the same amount. In fact, depending on the market conditions, the price of your options contract may even drop! Your CFD broker will charge you a finance fee for lending you money for your trade. However, no lending is required for options, so there is no finance charge. Because there's a finance charge by your CFD broker, CFD is not the ideal instrument for mid to long-term trades. On the other hand, options allow you to implement different strategies across time horizons. Both CFDs and options are leveraged instruments because they allow you to control a larger market position with a smaller amount of capital. While CFDs do not have an expiration date, options traders must pay attention to the expiration date of their options contracts. You must be thinking, "What's the beauty of trading options?" Options are like smartphones. You can choose to use a smartphone for its basic or advanced functions.

And options don't have to be all about Math and dry!

It can be made easy to understand through real-life analogies.

In the same way, you can implement basic and/or highly advanced strategies depending on your level of comfort. Options allow you to be versatile in adapting to the shifting market conditions and capturing opportunities in the process. Are you a CFD or options trader? I'm glad to be fluent in both. Finally, this is for educational purposes. Please perform your due diligence. All images are taken from pexels.com, pixabay.com, sectorspdrs.com, tradingview.com, and unsplash.com, unless otherwise mentioned.

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The stock market is full of traps laid out by professional traders. Many new traders are often left confused by conflicting signs and signals. Worse still, ~80% of traders lose money. This is because trading isn't just about skill alone. It includes the mastery of your emotions. But what if I told you that you could quickly gain control over your emotions of fear and greed and master the stock market? My team and I have worked tirelessly to help you achieve results fast. Click on the banner below to claim your stock course for free (limited time) now!