Are you on leave for the rest of the year?
Where are you going to spend New Year’s Eve?
I may laze around at home this year, given the wave of COVID and flu cases.
Last week, I’d shared about Teleflex’s (TFX) share performance and the key price level I’m waiting for.
Its share price has begun to pull back as anticipated. I think that there’s more, so you may want to continue waiting with patience.
And as we wait, you’ll want to consider this week’s stock pick: CrowdStrike (CRWD).
Performance Of US Stock Market vs CrowdStrike (CRWD)
CrowdStrike provides cybersecurity solutions, which have been in high demand in recent years.
How has it performed against the S&P 500?
From the comparison chart above, you can tell that its shares are in a strong uptrend.
You can also tell that they have been outperforming the S&P 500 consistently.
This is critical because you don’t want to put your money into the shares of a slow-moving stock for a swing trade.
Yes, in this instance, time is money.
Shall we analyze the shares of CrowdStrike further?
How Explosive Is CrowdStrike (CRWD)?
Because time is money, you’ll want to know if the shares of CrowdStrike have been explosive in the previous months.
In the past 9 months, its shares have exploded upwards on 14 occasions!
For a $61b company, short bursts measuring between 5.6% and 29.8% are eye-popping!
CrowdStrike’s shares look great for a swing trade. But, should you buy its shares now?
Key Price Levels
Should you buy its shares for a swing trade now?
Let’s uncover its key price levels.
I’ve identified a key price level that could be a possible support zone at ~$234.
Knowing that there could be buying pressure at ~$234, it’d be wiser to buy its shares around that price region.
And its share price looks to be falling after a magnificent 29.8% rise!
Therefore, you may want to watch the price area of around $234 for an entry.
The Strategy You Can Use To Swing Trade CrowdStrike (CRWD)
After comparing the performance of CRWD with the broader US stock market, determining whether CRWD has experienced explosive up moves, and identifying its key price levels, it’s time to talk strategy.
To stay in business, you must know your entry, profit-taking, and stop loss levels in every trading strategy. Yes, trading is a business, which means that your strategy must be well thought out.
Using The Art of Explosive Profits (AEP) framework, I’d like to see CRWD pullback and bounce at $234 before considering an entry for a swing trade.
As the name implies, you’ll be looking to consistently catch an explosive move in a short time.
Instead of relying on news and hearsay, the AEP course will teach you how to screen stocks for swing trading, like CRWD.
You’ll also learn how to read charts and identify stocks that are about to make a big move.
Finally, you’ll learn how to identify the optimal entry, stop loss, and take profit levels to capitalize on these explosive moves (in a safe manner, of course)!
Can you apply the AEP framework to provide you with a side income while working full-time?
Yes, you can!
Come, have a look at the AEP framework and incorporate this explosive trading strategy into your arsenal to capitalize on more swing trading opportunities.
Why Is Swing Trading CRWD Worth It?
Source: ir.crowdstrike.com
Technology has become an integral part of our daily lives, attracting bad actors. Cybersecurity, therefore, has a big role to play in keeping your data and mine safe.
Judging from the share performance of CrowdStrike, this is one of the most liked cybersecurity stocks in the world. Its shares have consistently outperformed the S&P 500.
Its shares have also demonstrated the ability to shoot up in a short time, a must-have criterion for swing trading.
While you wait for the setup, please keep in mind that I’m not a financial advisor, so please treat this as infotainment and conduct your own research.
Lastly, all images are from pexels.com, pixabay.com, sectorspdrs.com, tradingview.com, and unsplash.com.
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