This man loves the limelight. He enjoys being featured in headlines as frequently as possible.
Here’s a clue: He’s visiting Asia.
Did you get it right?
This man is President Donald Trump.
President Donald Trump is slated to meet President Xi Jinping on 30 Oct for a potential trade deal. This is a high-stakes meeting. Will a deal be struck? The world watches on in full suspense.
I’m hopeful for a trade deal to be struck. Uncertainty rocks the stock market, and this isn’t what traders love.
Amid this heightened volatility, I’ve identified 1 stock that’s performing extremely well. But before I analyze this week’s stock pick, let’s review last week’s #PowerStocks pick: BridgeBio (BBIO).
Review Of Last Week’s Pick Of The Week
BridgeBio (BBIO) was last week’s stock pick.
It’s 1 of the largest biotech companies in the world, with a market capitalization of over $10b.
After exploding higher by 18% in just a few days, its shares began to pull back.
A support area was identified at $54. This meant I anticipated the shares of BridgeBio rising after this pullback.
Thankfully, they did!
What’s my target price?
Should I wait to take profit only at my target price?
Head over to my Telegram Channel to find out!
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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 RTX (RTX) Worth It?
Source: investors.rtx.com/#Investors
RTX is an aerospace and defense company. It was previously known as Raytheon Technologies before its merger with United Technologies.
Blessed with a massive market capitalization of almost $240b, RTX is the 2nd largest aerospace and defense company in the world. It’s also the world’s 63rd largest company.
While the shares of some large-cap companies suffer from lethargy, RTX’s shares tend to explode upwards consistently — each of its explosive upmoves measures between 4.2% and 16.2%.
Its share price seems to be pulling back after a sharp rise of about 15% in over 1 week.
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 RTX (RTX)
What is the 1st thing I’d want to know from this analysis?
I want to identify the trend of RTX’s share price.
Why?
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.
Given the mighty uptrend in RTX’s share price, I’d like to identify a buying opportunity.
Great! But that’s not all.
I’ll compare the performance of the S&P 500 against RTX’s shares.
A stronger performer is more likely to continue bringing a higher return; therefore, buying the stronger performer is more likely to make my hard-earned money work harder.
While the S&P 500 had climbed 6.3% in the past 3 months, the shares of RTX shot up by 13.8% over the same time period! That’s a mighty outperformance by RTX of over 2x!
I want to buy its shares for an explosive swing trade.
But is this all to analyze?
How Explosive Is RTX (RTX)?
No, there’s still more to analyze to boost my chances of success.
Because I only wish to ride its next powerful upmove instead of hanging on to its shares, my holding period will be as short as a few days. Hence, I want its shares to have the ability to explode upwards fast.
Have RTX’s shares consistently exploded upwards?
Marking out the explosive upmoves for the past 11 months has left me stunned.
There are 15 huge explosive upmoves, each measuring between 4.2% and 16.2%!
What’s even more impressive?
RTX is the world’s 63rd largest company, enjoying a humongous market capitalization of almost $240b.
The share movement of such huge companies is usually more subdued, but not RTX.
Additionally, I appreciate that RTX enjoys a massive market capitalization, which 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 RTX for an explosive swing trade?
Key Price Levels
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 it time to buy the shares of RTX for an explosive swing trade?
You can have this insight by uncovering its key price levels (also known as support and resistance zones). And that’s what I’ve done in the chart above.
Because its shares have been soaring for over a week, I expect a temporary drop.
I’ve marked out a support area around $170.50. This tells us that RTX’s share price is likely to drop to around $170.50 before rising again.
Once this happens, I’ll be on the lookout for a bounce before buying its shares 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.
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!
