1 month after my cycling accident, my wounds are recovering well.
A new layer of tender skin is growing, erasing the scratches.
I’ve resumed cycling for about 2 weeks now and am thankful for all your care and concern.
Source: pexels.com
As the price of oil continues to climb, many companies in the energy sector stand to benefit.
Last week, HF Sinclair (DINO), an energy company was shared. How did it perform?
I was expecting the share price of HF Sinclair to bounce off its support region of $59, before entering for a swing trade based on The Art of Explosive Profits framework.
Its share price didn’t bounce as anticipated, therefore, there’s no trade.
The market jittered at Jerome Powell’s comments about interest rates will be remaining high for longer, sending the S&P 500 down by 1.65%.
Stocks across the board fell, with swing trading opportunities emerging in this energy-related stock: Phillips 66.
Let’s dive straight in and analyze this week’s swing trading opportunity.
Performance Of US Stock Market vs Phillips 66 (PSX)
What can you tell from the comparison chart above?
You can tell that the S&P 500 has been in a downtrend since Aug 2023 while Phillips 66 is still on a mighty uptrend.
From this, you can also infer that the share performance of Phillips 66 is superior.
Why are these 2 points important?
Riding the trend of a superior stock increases your chance of success.
How Explosive Is Phillips 66 (PSX)?
You’ve determined that buying Phillips 66’s shares for a swing trade increases your chance of success.
But is this stock explosive enough to help you profit?
Let’s find out!
Looking at the up moves that have been marked out, the smallest of them measures 6.1% while the largest measures 15.3%.
For a company with a market capitalization of more than $52b, such up moves are explosive!
Swing trading this stock makes sense. But is it time to buy its shares now?
Key Price Levels
Since money is made when you buy low and sell high, you’ll want to know if you’re buying into the shares of Phillips 66 at a reasonably low price.
You can do so by identifying its key price levels.
Noting that such levels act as support and resistance, you’ll be waiting for its share price to continue falling before bouncing off ~$117.20.
With a price area to focus on, it’ll help you to keep your emotions in check.
And when the bounce comes, I’ll apply The Art of Explosive Profits framework.
The Strategy You Can Use To Swing Trade Phillips 66 (PSX)
After comparing the performance of PSX with the broader US stock market, determining whether PSX 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 PSX pullback and bounce at around $117.20 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 PSX.
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 PSX Worth It?
Source: phillips66.com
The energy sector is going strong despite the pullback.
In fact, the recent pullback is highly welcomed because it provides more swing trading opportunities!
PSX has been consistently outperforming the S&P 500 and demonstrated its ability to explode upwards in price.
These factors bring the odds of success towards you and make your money work harder for you.
While we 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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