Public Storage: #PowerStocks Series Pick Of The Week (January 2024)

Have you ever faced the issue of running out of space in your storeroom?

Especially when you have kids.

I have.

I've given away boxes of old toys, clothes, and kitchenware. Yet, I still struggle to find space to store my belongings. 

Should I embrace minimalism?

Jokes aside, last week's stock pick, Pinterest (PINS), deserves a review.

Review Of Last Week's Pick Of The Week

Indeed, Pinterest's share price has pulled back. 

However, there's a problem.

Its share price has pulled back too deep, suggesting that the bulls aren't entering this stock anytime soon. 

Therefore, I'll be removing Pinterest from my watchlist. 

Why Is Swing Trading Public Storage (PSA) Worth It?

Source: publicstorage.com

Public Storage (PSA), this week's #PowerStocks pick of the week, provides a valuable service by allowing its customers to store their bulky items in their facilities. 

Traders and investors are optimistic about its shares. This can be inferred from its uptrend and superior performance against the overall US stock market. 

In addition, its shares have been exploding upward in price repeatedly in a short amount of time. 

Given these pointers, let's analyze its shares right away!

Performance Of US Stock Market vs Public Storage (PSA)

Earlier, the Fed had announced that it could potentially cut interest rates 3 times this year. Therefore, I feel that the US stock market could face increased volatility. 

With this in mind, swing trading (i.e. holding a stock for a couple of days to a couple of weeks) is likely to be a superior strategy. 

To enjoy greater success, you'll want to consider buying strong stocks. 

Hence, the comparison table.

Public Storage's shares initially underperformed the S&P 500 from late Oct to mid-Dec 23. 

Its share price took off just before Christmas and remains much stronger than the S&P 500 today. 

In addition, its shares are in a massive uptrend, so you'll want to be on the lookout for a buying opportunity. 

How Explosive Is Public Storage (PSA)?

Are the shares of Public Storage really worth buying for a swing trade?

Let's discover if they have the ability to explode in a short amount of time for you to maximize your trading capital.

I've marked out 10 explosive moves in Public Storage's share price in the past 10 months. 

For a company that enjoys a market capitalization of more than $52b to explode in price between 4.5% and 23.1%, this is stunning! 

Should you jump in to buy Public Storage's shares now? 

Key Price Levels

Uncovering the key price levels of Public Storage's shares, you'll notice that there's a support area at ~$296 and another at ~$281. 

I think that there's no need to FOMO by rushing to buy its shares now.

You could be better off waiting for its share price to break slightly below $296 and bounce before entering for a swing trade. 

The Strategy You Can Use To Swing Trade Public Storage (PSA)

After comparing the performance of PSA with the broader US stock market, determining whether PSA 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 PSA pullback deeper 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 PINS.

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.

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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