Has it been raining at your place last week?
Each time it pours for several hours, I’d wonder whether there’s a flood somewhere in the region. I’m saddened to learn of the floods in Malaysia and Indonesia.
I hope that assistance and rescue work will reach all those who are affected swiftly and effectively.
Turning our attention back to the stock market, the US market looks to be unstoppable! Just when I thought that a pullback was near, the S&P 500 broke new all-time highs and continued soaring.
Traders are optimistic in the lead up to the coming FOMC meeting, where interest rates are expected to be cut for the 1st time in 2025.
A lower interest rate environment is friendly to businesses and consumers. Which sectors do you think are likely to benefit from this environment?
Technology stocks should be 1 of the largest beneficiaries, and this week’s #PowerStocks pick is a technology stock.
But before I analyze this technology stock, let’s review last week’s #PowerStocks pick: Wynn Resorts (WYNN).
Review Of Last Week’s Pick Of The Week
Wynn Resorts (WYNN) was last week’s stock pick.
It’s 1 of the most renowned hotels with the best entertainment.
After rising 18.5% in just over a week, its shares began pulling back.
I’ve got my eyes set on its support area, and its shares have yet to test it.
Will I be editing my trading plan?
What do I intend to do?
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 Hewlett Packard Enterprise (HPE) Worth It?
Source: hpe.com
Hewlett Packard Enterprise is 1 of the most famous technology companies that provides cloud and technology solutions to enterprises.
Through its wide suite of solutions for corporate customers, the company boasts a massive market capitalization of over $32 billion.
While the shares of some mega capitalization companies suffer from lethargy, the shares of Hewlett Packard Enterprise tend to explode upwards consistently—each of its explosive upmoves measures between 5.2% and 37.1%.
After rising by 12.4% in over a week, its shares are likely to pull back soon, allowing me to ride 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 Hewlett Packard Enterprise (HPE)
The very 1st thing I want to know is the trend of Hewlett Packard Enterprise’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 have a look at the comparison chart above again.
While the S&P 500 has risen 8.9% over the past 3 months, the shares of Hewlett Packard Enterprise have risen nearly 36.4%! That’s a 4x 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 Hewlett Packard Enterprise (HPE)?
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 Hewlett Packard Enterprise been able to explode upwards consistently?
Marking out the explosive upmoves for the past 11 months has left me stunned.
There are 22 explosive upmoves, with each measuring between 5.2% and 37.1%!
My eyes popped out more when I discovered the size of Hewlett Packard Enterprise.
This company enjoys a huge market capitalization of over $32b! This ranks Hewlett Packard Enterprise among the world’s largest companies.
Additionally, I appreciate that Hewlett Packard Enterprise enjoys an enormous market capitalization, 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 Hewlett Packard Enterprise 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 Hewlett Packard Enterprise 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 12.4% in just over a week, I smell a pullback coming.
When the pullback comes, there’s a high chance for its shares to fall to around $23.90 before rising.
Therefore, I’m waiting for the shares of Hewlett Packard Enterprise to pull back to around $23.90 and bounce before buying them 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.
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