Crocs: #PowerStocks Series Pick Of The Week (May 2024)

The mid-year school holiday is coming! Do you have any travel plans? I'm in Down Under with my family (yes, and Alex's family) to soak in nature and enjoy the cool weather. Will you be heading to Down Under? As you prepare for your holiday, the US stock market continues to rise, just like the temperature in Singapore. Before I share this week's #PowerStocks, let's review last week's.

Review Of Last Week's Pick Of The Week

Arch Capital (ACGL) was last week's #PowerStocks pick. I'm happy to announce that luck was on our side. Its share price dropped to ~$98 as anticipated, before taking off to nearly $101. That's a cool 3+% gain in a couple of days. Because of these 2 major events taking place this week - the speech by Fed Chair and the release of the FOMC meeting minutes, you'll want to take profit at the 1st sign of danger. With a clear game plan for Arch Capital's stock, let's turn our attention to this week's stock pick: Crocs (CROX).

Why Is Swing Trading Crocs (CROX) Worth It?

Source: investors.crocs.com/overview/default.aspx

Crocs (CROX) is this week's #PowerStocks pick. It's a footwear company that designs, develops, manufactures, markets, and sells its signature flip-flops. How impressive can a footwear company's stock be? While the S&P 500 (the overall US stock market) is up 11.4% year-to-date, Crocs' shares have soared by more than 50% in the same time period. That's nearly a mind-blowing 5x! That's not all! The share price of Crocs has been explosive, providing swing traders with numerous rewarding trades. And there's good news. A pullback is here; you may want to be prepared to profit from its next explosive upmove. What's the price area I'm watching for an entry? Continue reading to get the details. P.S.: What if I told you that you could drastically gain control over your emotions of fear and greed, and master the stock market in a short period of time? My team and I have worked tirelessly to help you achieve results fast. Click on the banner below to claim your stock course for free (limited time) now!

Performance Of US Stock Market vs Crocs (CROX)

From the chart above, you can easily tell that the share price of Crocs is in an uptrend. By following the direction of the trend, your money can work harder for you with reduced risks. Therefore, you'll want to be looking for buying opportunities here. But before you do, it's important to know the performance of the S&P 500. Can you see that the S&P 500 has risen by about 6% in the past 3 months? In comparison, Crocs' share price has risen by nearly 20%, outperforming the S&P 500 by 3x! This tells you important information - your money is more likely to bring greater-than-market returns, making your trade worthwhile.

How Explosive Is Crocs (CROX)?

In this volatile market environment, swing trading allows you to capture powerful upmoves while reducing your chances of getting caught in a market pullback. Here, let's examine the explosivity of Crocs' share price. Crocs' share price has exploded between 5% and... wait for it... 34.6% in a matter of weeks! Upmoves of this magnitude are highly impressive for a company with a market capitalization of more than $8.5b. Furthermore, its share price seems to be pulling back, and I smell a swing trading opportunity emerging soon. Should you rush to buy its share for a swing trade? Let's analyze its shares a little more.

Key Price Levels

Share prices move in waves. To help you avoid (or reduce the chance of) buying while the share price is still dipping, it's critical to uncover its key price level. Yes, this is also known as support and resistance. These are areas where prices are most likely to turn, allowing you to buy its shares at a more sensible price and safely. Can you see an area of support around $139? There's a good chance of Crocs's share price pulling back to $139 or deeper before bouncing higher. And I'm eagerly waiting for this scenario to play out for a chance of swing trading its shares. Please note that this is for educational purposes. You're highly encouraged to perform your due diligence. All images are taken from pexels.com, pixabay.com, sectorspdrs.com, tradingview.com, and unsplash.com, unless otherwise mentioned.

Claim Your Free (Limited Time) Stock Course Right Now:

The stock market is full of traps laid out by professional traders. Many new traders are often left confused by conflicting signs and signals. Worse still, ~80% of traders lose money. This is because trading isn't just about skill alone. It includes the mastery of your emotions. But what if I told you that you could quickly gain control over your emotions of fear and greed and master the stock market? My team and I have worked tirelessly to help you achieve results fast. Click on the banner below to claim your stock course for free (limited time) now!