October 22

Swing Trading Opportunity: Ross Stores (October 2023)

On Friday morning, the Fed Chair, Jerome Powell delivered a speech. 

He mentioned that inflation is still too high. Moreover, he thinks that more should be done to reduce inflation.

However, he stopped short of commenting on the next steps to further lower inflation.  

That sank the stock market. 

Did Copart (CPRT), last week’s swing trading opportunity, perform as planned? 

Let’s find out!

Copart’s shares rose on Monday’s open and triggered an entry based on The Art of Explosive Profits. 

If you’d placed your take profit at $47, you would’ve profited a quick 1% in a day. 

Congrats to you!

Are there swing trading opportunities as the S&P 500 looks set to continue falling for a while more? 

I think so! 

Here’s 1 that I think may perform well this week or next: Ross Stores (ROST). 

Performance Of US Stock Market vs Ross Stores (ROST)

Comparison of S&P 500 and Rost Stores

The slide, which started in early Aug 2023, continues for the S&P 500. 

This slide brought many stocks down with it.

Not Ross Stores’. 

Its share price continued to surge before pulling back in Sep 2023. 

Overall, its share price is still in an uptrend. This signifies that you should be looking out for buying opportunities. 

But before you jump in to buy its shares, there are a couple of criteria that its shares must meet to increase your chances of success. 

The strength of Ross Stores’ shares must be compared against the performance of the S&P 500. 

From the chart above, it’s clear that the shares of Ross Stores win! 

How Explosive Is Ross Stores (ROST)?

Explosive up moves of Rost Stores

Time is of essence. 

Therefore, you’ll want the stock you swing trade on to explode in price before leaving for the next swing trading opportunity. 

Ross Store’s shares have demonstrated the ability to explode in price. 

In the past 7.5 months, there have been 14 explosive up moves. The largest of them measures 10.5%!

For a company with a market capitalization of more than $39b, this is impressive! 

Ok, I know that you’re eager to buy its shares. 

Let’s uncover its key price levels to determine an excellent entry.  

Key Price Levels

Key price levels of Rost Stores

I’ve plotted the key price levels above. 

These key levels are often also called support and resistance

Here, you can see an immediate resistance area at ~$117. 

Since there’s not much upside if you were to buy its shares now, I advise you to wait for a breakout and for its share price to remain above $117 before making an entry.

And where can you consider taking profit at? 

~$122, where the next resistance is. 

The Strategy You Can Use To Swing Trade Ross Stores (ROST)

After comparing the performance of ROST with the broader US stock market, determining whether ROST 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 ROST breakout and remain above $117 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 ROST.

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 ROST Worth It?

ROST is in a strong uptrend, and its performance has been beating the market for a couple of months.

Its shares have proven to be capable of exploding upwards, allowing you to reap handsome profits in a short period of time. 

Besides that, there’s a good chance for its share price to shoot after pulling back last week. 

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.

Here’s What You Can Do To Improve Your Trading Right Now:

#1 Join us in our Facebook Group where we discuss the various ways of applying this by clicking here.

#2 Get market updates delivered to you via Telegram by clicking here.

#3 Grab a front row seat and discover how you can expand your trading arsenal in our FREE courses (for a limited time only) by clicking here.

Trade safe!

Here Are The Articles That Might Interest You

Loved this? Spread the word

Join Swim Trading Trade Discussion Facebook Group

Our supportive online community is the best place to learn together with others just like you.