June 25

Swing Trading Opportunity: Edwards Lifesciences (June 2023)

Lots have changed with the help of research and development, especially in the field of medicine. 

Many diseases which used to be incurable are now curable. 

This has been beneficial, evident to the longer lifespan we enjoy. 

Before I introduce this week’s swing trading opportunity, let’s have a look at last week’s opportunity: Molson Coors Beverage (TAP)

Based on The Art of Explosive Profits framework, there’s no entry for a swing trading opportunity yet.  

Shall we turn our focus back to this week’s swing trading opportunity: Edwards Lifesciences?

Performance Of US Stock Market vs Edwards Lifesciences (EW)

Comparison of S&P 500 and Edwards Lifesciences

The 1st thing you’ll want to know if whether the share price of Edwards Lifesciences has been outperforming the overall US stock market. 

This can be done by comparing its performance to that of the S&P 500’s. 

From the comparison chart above, you can easily tell the the shares of Edwards Lifesciences have largely been stronger than the S&P 500. 

By being stronger than the S&P 500, there’s a greater chance of you making a greater return if you were to trade its shares. 

Did you also notice that the share price of Edwards Lifesciences is on an uptrend

You’ll want to look for buying opportunities, and this brings us to the next filter – price explosiveness. 

How Explosive Is Edwards Lifesciences (EW)?

Chart of Edwards Lifesciences

What is outperformance if the stock in question doesn’t exhibit explosive price movement?

You’ll be wasting your time and capital. 

In a short span of 8 months, there have been 12 explosive up moves. And they measure at least 5%!

This is remarkable because the largest explosive up move measures 12.1% and Edwards Lifesciences enjoy a massive market capitalization of nearly $55b!

To move its share price by 5%, you’ll need to inject around $2.7b.

Edwards Lifesciences has passed this test with flying colors. What’s the next step of analysis?

Key Price Levels

Support and resistance of Edwards Lifesciences

The very next step is to uncover its key price levels. This is because the price of Edwards Lifesciences’ shares is likely to turn at this price area. 

Yes, these key price levels are also known and support and resistance zones. 

Here, there’s an immediate support area at ~$89.

As the S&P 500 is poised to continue pulling back, there’s a good chance of the share price of Edwards Lifesciences pulling back to ~$89. 

Therefore, it would be a good idea to wait for its share price to drop to ~$89 before entering for a swing trade. 

The Strategy You Can Use To Swing Trade Edwards Lifesciences (EW)

After comparing the performance of EW with the broader US stock market, determining whether EW 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 EW fall further to $89 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 EW.

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 EW Worth It?

Edwards Lifesciences logo

Source: edwards.com

Stock picking and trading is much safer when you have a proven methodology. 

Using the methodology shared in this article, you’ll be able to eliminate most of the risks. 

EW has shown its ability to explode as much as 12.1% consistently, making it a superb swing trading candidate.

While we wait for the pullback, please keep in mind that I’m not a financial advisor, so please treat this as edutainment 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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