What did you get on Black Friday and Cyber Monday?
I’d renewed several of my subscriptions and bought a couple of gadgets.
The festive mood is here!
Your stock selection and trades can probably cover part of your expenses (if not, all).
Shall we have a review of last week’s stock pick, Walt Disney (DIS)?
Its share price continued to rise, nearing its immediate resistance zone at ~$97.50.
This signifies that there’s a higher chance of a reversal taking place soon, so be patient and wait for its share price to dip to ~$92 and bounce.
While we wait for Walt Disney’s shares to play out, I think that a swing trading opportunity could be coming our way in the shape of Republic Services’ shares (RSG).
So, let’s jump right in and analyze its shares!
Performance Of US Stock Market vs Republic Services (RSG)
What are the criteria to increase your chances of profitability from swing trades?
You’ll want the stock you are looking at to be outperforming the S&P 500. Otherwise, you should be better off buying the S&P 500 instead.
So, let’s compare the performance of Republic Services’ shares against the S&P 500.
Looking at the comparison chart above, you can tell 2 things
- Republic Services’ shares were stagnant from Sep to late Oct 23 while the S&P 500 was dropping in the same period
- The bulls returned and both entered an uptrend
What can you conclude?
Republic Services’ shares have been outperforming the S&P 500, therefore, it’s worth a deeper analysis.
How Explosive Is Republic Services (RSG)?
Because swing trades are meant to last for a couple of days or weeks, you’ll want the stock in question to be capable of exploding in a short period of time.
Do the shares of Republic Services meet this criteria?
In the past 8 months, its shares have shot up 11 times!
Each time, it had shot up between 3.1% and 11.5%! This is extraordinary for Republic Services which enjoys a huge market capitalization of $50b.
Having a huge market capitalization makes Republic Services less prone to market manipulation (remember GameStop and AMC Entertainment?), adding a layer of protection to your hard-earned money.
Key Price Levels
But is it time to buy the shares of Republic Services for a swing trade?
Let’s uncover its key price levels to get the answer.
I’ve identified a key level at ~$155, This is also its support zone.
Because its shares have flown by 11.5%, I think that a pullback will occur soon.
Guess where its share price is likely to pullback to before exploding?
Yes, around $155.
That’s the price area I will be watching closely before entering.
The Strategy You Can Use To Swing Trade Republic Services (RSG)
After comparing the performance of RSG with the broader US stock market, determining whether RSG 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 RSG pullback and bounce at $155 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 RSG.
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 RSG Worth It?
Who doesn’t like superior results? RSG has been consistently outperforming the S&P 500.
Equally important, RSG has proven to be capable of exploding in price in a short period of time.
Having your trading capital stuck in a slow moving stock is agonizing.
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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