Is there a special place which you’d visit every once in a while?
Where is it?
It’s Hong Kong for me because my wife and I had our wedding photos taken there. I’m always full of emotions when I’m in Hong Kong.
Much has changed in Hong Kong after the strict COVID-19 regulations.
But Hong Kong is coming back to life with the return of tourists from around the region.
Though I’ve just returned from Hong Kong, I’m looking forward to visit Hong Kong again at the end of this year.
Last week, the technology sector consolidated in a tight price range after a shallow pullback. This is highly welcomed because every bullish move needs to be punctuated before another can resume, taking the share price of technology stocks even higher.
Oracle, our swing trading opportunity for last week, benefited from this pullback and consolidation.
Following The Art of Explosive Profits framework, you’d have bought its shares and be sitting in the profit.
As this is the beginning of a new up move, I believe that there’s more to come in the next few days.
This week’s swing trading opportunity is a stock in the communication services sector: Take-Two Interactive Software (TTWO).
Performance Of US Stock Market vs Take-Two Interactive Software (TTWO)
When it comes to choosing a stock to buy for a swing trade, it’s highly recommended that it outperforms the US stock market (S&P 500).
You are looking for higher returns in a short period of time, and this filter sifts out the strong stocks which have a higher chance of outperforming the S&P 500.
Looking at the comparison chart of the S&P 500 and Take-Two Interactive Software (TTWO), what can you tell?
Take-Two Interactive Software’s share price is on an uptrend.
It shares performance has been stronger than the S&P 500 for the past 3 months!
Did you also observe another thing?
While the value of S&P 500 went sideways last week, the share price of Take-Two Interactive Software rose.
This is getting interesting.
Let’s have a look at the price chart of Take-Two Interactive Software to find out whether its share price has the ability to burst upwards for us to capture.
How Explosive Is Take-Two Interactive Software (TTWO)?
From the chart of Take-Two Interactive Software above, you can see 15 explosive up moves in the span of 6 months.
Taking into account its market capitalization of $21b, these explosive up moves (ranging from 4.1% to 11.6%) are significant and remarkable!
So, the shares of Take-Two Interactive Software have proven to be explosive, enabling you to be rewarded handsomely if you buy them for a swing trade.
Things are getting more interesting!
We are almost there. Hang on!
Key Price Levels
So, the share performance of Take-Two Interactive Software has passed the 1st 2 tests.
It’s a good idea to uncover any potential turning points which will potentially lead to a favorable entry point.
To do so, let’s identify its key price levels (aka support and resistance zones).
Referring to the chart above, you can see that there’s an immediate support zone ~$118 and an immediate resistance zone at ~$126.
Because the share price of Take-Two Interactive Software is already on its way up, it could rise further to ~$126 before pulling back.
Patience is necessary in allowing you to capture wonderful swing trading opportunities.
The Strategy You Can Use To Swing Trade Take-Two Interactive Software (TTWO)
After comparing the performance of TTWO with the broader US stock market, determining whether TTWO 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 TTWO break above $126 and pullback 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 TTWO.
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 to your arsenal to capitalize on more swing trading opportunities.
Why Is Swing Trading TTWO Worth It?
Take-Two Interactive Software’s shares have been beating the market in the past 3 months. This outperformance is likely to continue with momentum on its side.
15 explosive up moves ranging between 4.1% to 11.6% have occurred in the space of 6 months, proving that it has the ability to make your money work hard for you.
While we wait for the breakout and 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, rockstargames.com, sectorspdrs.com, tradingview.com, and unsplash.com.
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