What? The 1st quarter of 2026 is almost over!
2026 has been a whirlwind for the US, affecting the world. The war in Iran doesn't seem to be ending anytime soon. A long, drawn-out war isn't going to benefit the US or anyone else, especially when the Strait of Hormuz is blocked, and energy tankers are targets.
In the midst of this war and chaos, are there short-term trading opportunities that can be capitalized on?
Good news, there are!
But they don't lie in the defense industry or the energy sector.
Before I share about a short-term trading opportunity that I've uncovered, let's review last week's #PowerStocks pick: Netflix (NFLX).
Review Of Last Week's Pick Of The Week
Netflix (NFLX) was last week's #PowerStocks pick.
It's the world's largest media streaming provider, worth over $418b. The company also produces captivating shows.
The shares of Netflix soared the moment it pulled out of the race to acquire Warner Bros. As almost everything in life, this upmove cannot last forever. It will be punctuated by a pause (or pullback).
Having identified a support area around $94, I'd planned for its shares to pull back to $94 before rising. And I'm thankful that this has just happened!
Now, where am I looking 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.
To protect you from scams, please note that my team and I WILL NEVER solicit for any investment.
A list of our official communication channels can be found here.
Why Is Swing Trading Evergy (EVRG) Worth It?
Source: seeklogo.com
Evergy is a utilities company that provides electricity to homes, offices, eateries, and more.
With a market capitalization of $19b, Evergy is the world's 35th largest utilities company.
Unlike many large companies whose shares exhibit lethargic price movement, its shares are highly active, consistently surging.
After rising for 8.4% in just days, its shares have begun pulling back.
This is great news because I would like to buy its shares and capture its next explosive upmove.
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 Evergy (EVRG)
The very 1st thing I want to know is the
trend of Evergy's shares.
Knowing the trend of its shares allows me to determine whether I'd look for a buying or shorting opportunity because following its price trend will sharply increase my chances of profitability.
Looking at the chart above, its shares are in a steady and strong uptrend. Hence, I'd like to find an opportunity to buy its shares.
What's next?
I'll compare the performance of its shares against the S&P 500.
Why?
I want my hard-earned money to work hard for me. A stronger-performing stock is likely to continue bringing a larger-than-market return. So, I'll take another look at the comparison chart above.
While the S&P 500 has fallen 2.4% over the past 3 months, the shares of Evergy have risen by an eye-popping 12.7%! That's more than a 14-percentage-point outperformance!
I'm excited. I can't wait to buy its shares for an explosive swing trade.
Should I do just that now?
How Explosive Is Evergy (EVRG)?
No, I shouldn't rush to buy its shares without a deeper analysis.
Since I plan to buy its shares and capitalize on its next upmove rather than accompanying it when it pulls back, my holding period will be around a week or 2. Therefore, I want its shares to have the ability to explode upwards.
Have the shares of Evergy been able to explode upwards consistently?
Marking out the explosive upmoves for the past 11 months has left me stunned.
There are 11 explosive upmoves, with each measuring between 4.1% and 11.8%!
I got more excited when I discovered the size of Evergy.
This company enjoys a large-sized market capitalization of over $19b! It's no easy feat for the shares of such a company to explode in price consistently.
Additionally, I appreciate that Evergy enjoys a market capitalization of over $19b, as 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 buy the shares of Evergy for an explosive swing trade?
Key Price Levels
Timing is crucial for many things in life. This includes stock trading and investing.
Buying an explosive 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!
Is there a way to tell whether the time to buy the shares of Evergy is here?
Fortunately, yes!
You can do so by uncovering its key price levels (also known as
support and resistance zones). And that's what I've done in the chart above.
After rising 8.4% in under 2 weeks, its shares began pulling back.
Although it seems like this pullback is over, I wouldn't want to buy its shares for an explosive swing trade yet.
Why?
A resistance area has been identified around $82.70, suggesting that Evergy's share price could head lower unless it breaks out of this price area.
Therefore, I want Evergy's shares to break above $82.70 before I buy its shares for an explosive swing trade to ride its next huge 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.
Claim Your Free (Limited Time) Stock Course Right Now:
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!
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