October 15

Swing Trading Opportunity: Copart (October 2023)

“No, your eyesight isn’t poor.”

I’d noticed that the buildings in front of me looked fuzzy these days. 

Ah, it’s haze. 

I hope that the haze hasn’t affected your health!

2 weeks back, I shared about Apollo Global Management (APO)

Its share price had failed to clear the key price level that I’ve pointed out, so there’s no entry.  

The price action of its shares doesn’t suit The Art of Explosive Profits framework, so you can consider removing it from your watchlist. 

I’ve dug deeper into the stock market and uncovered this gem in the Industrials sector.

This gem has been performing better than the hot Technology sector as a whole for a while!

So let’s jump right into this week’s swing trading opportunity: Copart (CPRT).

Performance Of US Stock Market vs Copart (CPRT)

Comparison of S&P 500 and Copart

Before seriously considering any stock to swing trade on, it’s a good idea to compare it with the overall stock market. This is to find out if the stock has the potential to continue bringing you returns that are larger than the market’s.

Because Copart is listed in the US, I’m comparing it to the S&P 500. 

From the comparison chart above, can you tell that the S&P 500 value and Copart’s share price were weak between Aug 2023 and early Oct 2023?

While the S&P 500 struggled to form new highs, the share price of Copart trended higher and higher!

And because Copart’s share price has been rising, Copart’s shares have been outperforming the market.

This makes it a stock worth further analyzing for a swing trade. 

How Explosive Is Copart (CPRT)?


Explosive Up Moves of Copart

At this stage of analysis, you’ll want to determine whether Copart’s shares are explosive in nature. 

In a short 8 months, Copart’s share price has rocketed between 5.2% and 16.2% in 9 occasions! 

Do you know what makes this even more impressive? 

Copart’s market capitalization.

It enjoys a whopping $43b market capitalization, which makes its up moves so impressive! 

You’re convinced that Copart’s shares are suitable for an explosive swing trade. 

Should you buy its shares now? 

Key Price Levels

Key price levels of Copart

Timing is key.

To help you with that, I’ve uncovered the 2 key price levels of Copart’s shares. 

These key levels are also known as support and resistance zones, where prices tend to turn.

I’ve identified a support area at ~$45. 

As its shares are beginning to reverse, you can expect it to reach ~$45 before possibly bouncing higher. 

This information is critical in timing your entry so that you are aware of where to take aim. 

A resistance area at ~$47 has been drawn out too. 

There’s a chance for the shares of Copart pulling back to ~$45 and rising to ~$47 (that’d be a 4+% move) or beyond in the coming days.   

The Strategy You Can Use To Swing Trade Copart (CPRT)

After comparing the performance of CPRT with the broader US stock market, determining whether CPRT 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 CPRT continue falling to around $45 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 period of time.

Instead of relying on news and hearsay, the AEP course will teach you how to screen stocks for swing trading like CPRT.

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.

Why Is Swing Trading CPRT Worth It?

CPRT logo

Source: copart.com

This stock shines in its sector and is even outperforming the overall Technology sector! 

In addition, CPRT has shown to be capable of explosive moves between 5.2% and 12.1%, providing you the possibility of a return that’s higher than the market in a short period of time. 

And its share price is near a key price level, suggesting that an opportunity could appear sooner than later. 

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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Trade safe!

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