In the blink of an eye, we are in the last month of the year!
Have your gatherings begun?
Orchard Road (the most famous shopping belt in Singapore) is brimming with life. With colorful lights and activities happening, it’s easy to understand why!
A stock from the Industrials sector was our swing trading pick of the week. How has it played out?
Let’s review Republic Services (RSG).
Its shares have pulled back to around $155 and exploded thereafter.
Did you buy the shares of Republic Services for a swing trade?
This week’s stock pick is also from the Industrials sector: Union Pacific (UNP).
Shall we dive right in?
Performance Of US Stock Market vs Union Pacific (UNP)
As with any stock, I’ll compare its recent performance against the S&P 500 to know whether I’m buying into a strong stock.
Strength matters because you’ll want your returns to be larger than the market’s.
How does the performance of Union Pacific’s shares compare against the S&P 500?
Its shares have been relatively weak against the S&P 500 throughout Sep and Oct 23.
Strong bullish momentum began gathering in Nov 23, and its performance finally beat the S&P 500!
That’s not all.
Can you tell that the S&P 500 has been pretty much stagnating in late Nov 23?
This is in stark contrast to Union Pacific’s share price!
Yes, its shares are on a turbo-boosted uptrend.
How Explosive Is Union Pacific (UNP)?
Here comes the more exciting part of our analysis.
Has the shares movement of Union Pacific been explosive?
With a market capitalization of more than $141b, these 12 up moves ranging between 4% and 19.5% are indeed explosive!
You’ll want to look at stocks with a large market capitalization to prevent falling victim to market manipulation.
Key Price Levels
Is there more to consider before you trade the shares of Union Pacific?
Timing is critical, as you’ll want to shift the odds of success to your side.
Hence, you’ll want to uncover the key price levels (aka support and resistance zones) of Union Pacific’s shares.
Spotting a support area ~$225, you can reasonably expect the share price of Union Pacific to pullback to that area before relaunching.
Therefore, this isn’t the best time to buy its shares for a swing trade.
I’ll be waiting for it to pull back before considering an entry.
The Strategy You Can Use To Swing Trade Union Pacific (UNP)
After comparing the performance of UNP with the broader US stock market, determining whether UNP 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 UNP pullback and bounce at $225 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 UNP.
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 UNP Worth It?
The S&P 500 has been soaring. For the more astute traders, you’ll prefer higher-than-market returns.
That’s what UNP has proven to be capable of.
With a tested strategy and proper risk management, you can be more confident and enjoy the returns UNP brings.
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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