July 9

Swing Trading Opportunity: Unum (July 2023)

Have you been paying attention to the financials sector?

It has been quietly climbing in the background while the media shines its spotlight on semiconductor, technology, and AI related stocks. 

Huh, but is the situation with the banks more stable?

While the financials sector consists of banks, there are a couple more industries such as insurance and payments that form the financials sector. 

And this week’s swing trading opportunity lies in the insurance industry.

Before I bring you through my thoughts on this week’s swing trading opportunity, I’d like to share an update on the swing trading opportunity shared last week: CSX (CSX).

CSX has indeed pulled back to ~$33.40 and could be ready for a take-off. 

All right, you’re now ready to dive into the analysis of Unum (UNM). 

Performance Of US Stock Market vs Unum (UNM)

Comparison of S&P500 and Unum

How have the shares of Unum performed against the S&P 500?

This is an important point to note because you’ll want to make returns that are higher than the market. 

Looking at the chart above, you can tell that the share performance of Unum is stronger than the S&P 500. 

In fact, it has been much stronger than the S&P 500 for several months. 

Did you also observe that while the S&P 500 is pulling back, Unum’s share price is still trending higher

From these observations, you can safely conclude that Unum’s shares are strong and worth a deeper look at. 

How Explosive Is Unum (UNM)?

Chart of Unum making explosive up moves

Unum’s shares performance has been outstanding, beating the market.

Because you’re looking to buy it for a swing trade, you’ll want to know if its shares have been explosive to make your money and time holding its shares worthwhile. 

I’ve marked out every up move of Unum’s shares to save you time. In total, there are 12 up moves measuring between 3.5% and 11.9%.

Having a market capitalization of nearly $10b, this is no easy feat! 

Unum’s shares performance has cleared this round of analysis and let’s proceed to the next step of analysis to discover if the time to buy its shares for a swing trade is here.

Key Price Levels

Support and resistance on chart of Unum

At this step, you’ll want to uncover its key price levels so that you know if you’re buying at an area of value. 

Support and resistance is another way you can view its key price levels as. 

You can see an area of support ~$46.80.

And because Unum’s share price is up by 8.3% and counting, I think that a pullback is near. 

When its share price pulls back, we can expect it to fall to ~$46.80 before rising again. 

Hence, all we need to do now is to be patient by waiting instead of rushing to buy its shares for a swing trade now. 

The Strategy You Can Use To Swing Trade Unum (UNM)

After comparing the performance of UNM with the broader US stock market, determining whether UNM 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 UNM fall to $46.80 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 UNM.

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 UNM Worth It?

UNM logo

Source: investors.unum.com/news-events/presentations/default.aspx 

The financials sector has been creeping up silently without media coverage, and UNM belongs to this sector.

UNM has been performing extraordinarily well, even beating the S&P 500’s performance.

In addition, UNM has demonstrated time and again that it’s capable of exploding in price, rewarding swing traders.   

While we wait for the 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, sectorspdrs.com, tradingview.com, and unsplash.com.

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