“Pump prices are up by at least 3 cents (SGD) a liter.”, the newscaster reported on radio while I was driving.
My heart sank.
The price of crude oil has been on the rise for the past 1.5 months, benefitting many companies in the Energy sector.
Since, energy stocks are enjoying bullish momentum, I shall analyze a stock in that sector this week.
Before I dive in to the stock, let’s review last week’s swing trading opportunity: Amgen (AMGN).
Amgen’s share price rose before returning. I’d still like to see it head lower to its support zone at ~$252 before taking a swing trade based on The Art of Explosive Profits framework.
Alright! Let’s now analyze this week’s swing trading opportunity: CNX Resources (CNX).
Performance Of US Stock Market vs CNX Resources (CNX)
Can you tell that the shares performance of CNX Resources beats the performance of the S&P 500?
This comparison is essential because you’ll want the shares of CNX Resources to have a high chance of bringing you outsized returns.
Without this likelihood happening, you’ll be better off buying the S&P 500 instead.
In addition, can you tell that the shares of CNX Resources are in a strong uptrend as the S&P 500 pulls back?
Knowing the trend of CNX Resources’ shares, you’ll want to be looking for buying opportunities.
But, there’s more to discover before you hit the Buy button.
How Explosive Is CNX Resources (CNX)?
Ok, so the shares of CNX Resources are trending higher.
Are its shares explosive enough to warrant your time and money?
To save you time, I’ve counted the number of explosive up moves and their magnitude.
CNX Resources’ shares have rocketed 15 times in the past 9 months, with each up move measuring between 4.5% and 23.8%!
With a market capitalization of almost $4b, this is a feat.
Knowing that the shares of CNX Resources is capable of exploding upwards in price, is it the right time to buy its shares for a swing trade?
Key Price Levels
Here, I’ll be uncovering the key price level of CNX Resources’ share price.
Yes, key price levels are also know as support and resistance zones, or turning points.
This is because the share price of CNX Resources is likely to turn at these zones.
I’ve marked out the $20.50 region as I think that its price should be pulling back soon. And this is the the price area it is likely to stop at, before rising once again.
You may consider buying its shares on the bounce at that price area.
The Strategy You Can Use To Swing Trade CNX Resources (CNX)
After comparing the performance of CNX with the broader US stock market, determining whether CNX 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 CNX pullback and bounce at around $20.50 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 CNX.
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 CNX Worth It?
Source: csx.com
As the energy sector has been performing extremely well in the past 1.5 months, CNX has been outshining the S&P 500 since June 2023.
Besides, its shares have been enjoying explosive up moves – 15 in just the past 9 months!
With such strong bullish momentum, there’s a high chance of a continuation of such explosive behavior after a pullback.
It’s therefore a good idea to monitor CNX in the next few days.
While we 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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