February 17

Ecolab: #PowerStocks Series Pick Of The Week (February 2024)

Gong Xi Fa Cai!

Are you looking forward to more Lunar New Year visitations?

Did you also catch the dragon-themed drone show by Marina Bay Sands?

The Year of the Dragon is often seen as an auspicious year for many. The Chinese love dragons for their strength, vitality, and luck.

May this Year of the Dragon favor you!

Shall we briefly review our last stock pick of the week: Bank of America (BAC)?

Review Of Last Week’s Pick Of The Week

The share price of Bank of America (BAC) dipped slightly below $33 as planned before rising 3.2%.

Though Bank of America’s share price experienced increased volatility last week alongside the S&P 500, it has risen by 3% compared to a decline of 0.3% in the S&P 500.

Its shares continue to shine, outperforming the overall US stock market.

Therefore, you may consider holding onto the shares of Bank of America for a while longer, possibly taking profit at ~$35.50 for a 7% profit in mere weeks.

If you’d like a more detailed framework, I encourage you to check out the Art of Explosive Profits framework my students and I use to catch big moves.

Looking ahead, why is Ecolab (ECL) our #PowerStocks pick of the week?

Why Is Swing Trading Ecolab (ECL) Worth It?

Ecolab Logo

Source: ecolab.com

Ecolab (ECL), this week’s #PowerStocks pick, provides water and hygiene solutions to many customers from the food and beverage, petrochemical, manufacturing, healthcare, hospitality industries, and more.

Being an essential service provider with a huge customer base, it’s little wonder that its share price is rocketing!

Its share price has proven to be explosive, rewarding traders between 5% and 27.2% in the past few months.

In addition, the share price of Ecolab is pulling back and could reach its support area soon, readying for a swing trading opportunity.

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 period 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 Ecolab (ECL)

Comparison of S&P 500 and Ecolab

How does the share performance of Ecolab fare against the overall US stock market (ie. the S&P 500)?

Can you tell that Ecolab’s shares have consistently outperformed the S&P 500, with the only exception being in late Jan to mid-Feb 24)?

This observation is important because you’ll want to enjoy outsized returns for a swing trade.

By comparing the stock against the S&P 500, it helps you filter weak-performing stocks, allowing you to make your money work harder for you.

Did you also notice that the share price of Ecolab is in a predictable uptrend?

With such bullish momentum, its share price will likely continue rising, making it a fantastic candidate for a swing trade.

Therefore, you’ll want to analyze this stock further.

How Explosive Is Ecolab (ECL)?

Ecolab Explosive Up Moves

How explosive has the share price of Ecolab been?

Knowing this helps to set a healthy expectation.

While in an uptrend from May to late-July in 2023, its shares have exploded between 5% and 10.1%!

And its shares have rocketed between 12.9% and 27.2% in the latest uptrend!

Enjoying an enormous market capitalization of more than $61b, such explosive moves are highly impressive. Besides, swing trading this stock is much safer than counters with a small market capitalization.

Key Price Levels

Ecolab Key Price Levels

But is it time to buy Ecolab’s shares for a swing trade?

Let’s uncover its immediate key price level to watch. This key price level is also known as a support and resistance zone.

We’ll have to zoom out to 2021 to uncover its immediate support and resistance zone at ~$207.

After exploding by 12.9% and a couple of bearish candles, I think a pullback is here.

You can expect the share price of Ecolab to pull back to ~$207 before rising again.

Therefore, I’m eagerly waiting for its share price to drop to ~$207 before considering buying its shares for a swing trade.

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.

Claim Your Free (Limited Time) Stock Course Right Now:

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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!

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