March 13

Pick Of The Week – Analysis On Republic Services (Week 11, 2022)

Will this war end soon after all the sanctions?

While all eyes are on energy, commodity, and defense stocks, there’s a stock that’s creeping up slowly.

As you know, it’s my philosophy to avoid hot stocks. This is because the stock would’ve risen by a fair bit for the media to report it. Besides, hot stocks can be driven by red hot sentiment, increasing the stock’s volatility.

The fact that no one is talking about this stock makes it an excellent candidate. Introducing… Republic Services (RSG)!

Is this your 1st time hearing of this stock? Fret not as I’ll walk you through my analysis on RSG.

Performance Of US Stock Market vs Republic Services

The week started off with the bears in control of the S&P 500 futures and RSG. As the week progressed, prices of the S&P 500 futures consolidated in a range (marked out by the gray box), similar to last week’s price action.

How did the price of RSG fare last week?

The price of RSG dropped, alongside the S&P 500 futures. RSG managed to recover partially, ending the week down 2.3%.

Do you think this should be a concern?

Let’s look at the bigger picture to find out.

Prices kept sliding in from Jan 22 to Mar 22: RSG was in a downtrend (shown by the arrow in red).

Thereafter, the trend changed. There’s a reversal of trend which the bulls are in control (shown by the arrow in green).

Are you scratching your head because you’re unsure on how to read a trend? Here’s how you can read a trend under 5 seconds.

As with an up and downtrend, pullbacks are expected and healthy. Therefore, the drop last week shouldn’t pose a concern.

Now that you agree that RSG is a worthy candidate this far, let’s proceed to analyze it further.

How Explosive Is RSG?

Oh hang on for a minute. I haven’t properly introduced RSG. 

RSG is a waste management company operating in the US. It’s no small company as it has a market capitalization of more than $40b.

With such a large market capitalization, have the up moves of RSG proven to be explosive?

In the past 6 months, RSG has experienced 3 huge price rallies, with the smallest measuring 10.3%! 

That’s some serious explosive up moves! 

You know the drill. The next step is to identify key price levels. 

Key Price Levels

Key price levels act as support and resistance zones. These zones are likely where the price of RSG will turn or bounce off at. This makes it important for these price levels to be marked out. 

Let’s identify RSG’s key price levels together!

You can see that there’s an immediate support and resistance zone at $124 and $133 respectively. This means that if the price of RSG rises, it would probably hit $133 and get rejected. 

On the flipside, if the price of RSG drops, it would probably drop to $124 and bounce. 

Given that the price of RSG has experienced a pullback, I’d prefer for it to head higher. 

The Strategy You Can Use To Trade RSG

Because RSG is an explosive stock, you’ll want to apply The Art of Explosive Profits framework (AEP for short). 

As its name suggests, you’ll be looking to catch an explosive move in a short period of time consistently. 

In the AEP course, you’ll be coached on how to search for strong stocks like RSG instead of relying on news and hear-say.

You’ll also become fluent in reading charts to shortlist stocks that are about to have an explosive move.

Finally, you’ll learn how to identify the optimized entry and exit points to capture these explosive moves that you’ve been waiting for (in a safe manner, of course)! 

Have a look at the AEP and add this explosive trading strategy to your arsenal to seize more trading opportunities.

Why Is RSG The Stock Pick Of The Week?

RSG is the stock of the week because isn’t in the news, attracting unwanted attention. 

In addition, RSG is in a fresh uptrend, providing opportunities to apply the AEP framework.

Despite its huge market capitalization of $40b, each of its up moves has been more than 10%!

However, you’ll need to know that I’m not a financial advisor, so please treat this article as education. Have fun conducting your research and I’d love to hear your thoughts in our Facebook Group

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