Were you surprised by the bullish moves in the US stock market?
The stock market is indeed full of surprises.
As you enjoy riding the trend, it’ll be prudent to be more cautious to avoid falling for greed, which can be disastrous.
After reading about last week’s stock pick, Packaging Corporation of America (PKG), did you suddenly begin to notice packaging and shopping bags everywhere?
Its share price has dropped to $162 and bounced, just as planned!
Time will tell if it can continue rising, bringing you and I a decent return.
This week, let’s turn our focus to Teleflex (TFX), shall we?
Performance Of US Stock Market vs Teleflex (TFX)
Are you wondering why Teleflex is chosen?
Although Teleflex is in the Healthcare sector, its share performance has been outstanding.
Can you tell from the chart above that the share performance of Teleflex has been beating the S&P 500?
Furthermore, Teleflex’s shares are in a stronger uptrend!
This trait of Teleflex’s shares makes it an ideal candidate for a swing trade thus far.
What are the other factors to consider?
How Explosive Is Teleflex (TFX)?
When you’re choosing a stock for a swing trade, you’ll want it to be worth your time and investment.
Therefore, you’ll want the stock you’re analyzing to be capable of exploding in price.
Has the share price of Teleflex exploded in price over short periods of time?
Yes, it has!
Its share price has exploded between 4.1% and 27.9% from the beginning of Mar this year!
Standing strong with a market capitalization of nearly $12b, it’s considerably safe to trade its shares.
So, is it time to buy its shares for a swing trade now?
Let’s analyze its shares further.
Key Price Levels
Before you invest in any asset, it’s a good idea to determine an entry price.
In stocks, you can do so by uncovering the stock’s key price levels.
Here, I’ve uncovered the key price levels of Teleflex’s shares.
Because these key price levels act as support and resistance zones, you’ll want to look to buy at its support areas.
I’ve identified a support area ~$233.
After a run-up of 27.9%, the chance of a pullback is high. Hence, we can expect its shares to pullback to ~$233 in the near future.
So, you won’t want to look to buy its shares now.
The Strategy You Can Use To Swing Trade Teleflex (TFX)
After comparing the performance of TFX with the broader US stock market, determining whether TFX 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 TFX pullback and bounce at $233 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 TFX.
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 TFX Worth It?
The US stock market has been red-hot. This healthcare stock is no slouch.
Rather, Teleflex’s shares have been outperforming the S&P 500 consistently for a month.
Its shares have also demonstrated its ability of rising in short bursts, a must-have criteria for swing trading.
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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