Deckers Outdoor: #PowerStocks Series Pick Of The Week (December 2024)

Have you noticed this? The malls are packed on weeknights. Children are seen enjoying themselves without concern, running around in parks and happily playing with water. Couples are seen taking photos with the Christmas decorations. The festive season is finally here! There's another reason to be happy - the US stock market. It has been defying gravity ever since President-elect Donald Trump won the Presidential Election. This has gotten many traders excited, drooling over the market. How did the #PowerStocks pick for last week, Cloudflare (NET), perform? Let's review it.

Review Of Last Week's Pick Of The Week

Cloudflare (NET) was last week's stock pick. It belongs in the Technology sector, providing cybersecurity solutions. Having identified a support area around $97, I was waiting for its share price to pull back to this area before buying its shares. But the market had other plans. Just after sharing my thoughts, the shares of Cloudflare jumped and took off. As shared in my Telegram Channel, this is part and parcel of trading. Shall we now discover why Deckers Outdoor is my stock pick of the week?

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Why Is Swing Trading Deckers Outdoor (DECK) Worth It?

Source: deckers.com

Deckers Outdoor belongs to the Consumer Discretionary, selling sports apparel and accessories. Market participants love its shares, constantly pushing its share price higher. In the last 3 months, its share price has flown by nearly 40%. Such a performance beats that of the S&P 500 by more than 3x! As the share price of Deckers Outdoor pulls back, I sense a fantastic explosive swing trading opportunity coming. Which price area am I waiting for? 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 amount 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 Deckers Outdoor (DECK)

Before buying any stock, it pays to analyze it well. So, let's begin by identifying the trend of Deckers Outdoor's shares. Can you easily tell that its share price is in a wonderful uptrend? What is the significance? Due to its rising share price, buying its shares will maximize your trading capital. Because you want to maximize your trading capital, you'll also want the stock to beat the market consistently. So, let's refer to the comparison chart above. In the last 3 months, the S&P 500 had risen by 12.6%. In comparison, the share price of Deckers Outdoor had risen by 39.2%! Yes, that's a remarkable 3x outperformance! Hence, you have a strong reason to continue analyzing this stock.

How Explosive Is Deckers Outdoor (DECK)?

While it's great that the shares of Deckers Outdoor have been bringing a return larger than the market's. However, is there something even better? Consistent explosive upmoves. You'd want to put your hard-earned money into a stock that can bring you larger-than-market returns in a short amount of time. Do the shares of Deckers Outdoor explode upwards in price consistently? To save you time, I've marked out its explosive upmoves. In total, there are 21 explosive upmoves in just 11 months! Furthermore, this is wild considering its market capitalization of $30b! Enjoying a market capitalization of $30b, its stock is difficult to manipulate, adding a layer of safety to your trading. Here comes the question that you have been waiting for - is it a good time to buy its shares for an explosive swing trade?

Key Price Levels

Uncovering its key price levels is a fantastic idea to help you decide whether the time to buy its shares is ripe. These key price levels act as support and resistance zones, helping you spot turning points of its shares, and improving your risk-to-reward ratio. I've uncovered a support area at around $198. Here's my game plan. I think that the share price of Deckers Outdoor could continue to pull back a little more before rising. So, I'll be watching the price area of $198 before pulling the trigger. Here's a pro tip: Instead of staring at your screen, you may want to set a price alert on your broker's platform to be notified so that you can spend precious time with your loved ones.

Which Instrument Should You Consider Using?

  Do you ever wonder about the instrument used to trade explosive stocks? With 3 main trading instruments available - stocks, contract-for-difference (CFD), and options, you wonder which suits you best. Since stocks (as an instrument) is easy to understand, I shall focus on CFD and options. Here are the main similarities and differences: CFD works like a mirror to stocks. When a stock rises $1, its CFD rises $1. However, due to its unique pricing mechanism, your options price doesn't rise by the same amount. In fact, the price of your options contract may even drop, depending on the market condition! Your CFD broker will charge you a finance charge for lending you money for your trade. There's no lending required for options, hence there's no finance charge. Because there's a finance charge by your CFD broker, CFD is not the ideal instrument for mid to long-term trades. On the other hand, options allow you to implement different strategies across time horizons. Both CFD and options are leveraged instruments because they allow you to control a larger position in the market with a smaller amount of capital. While there isn't an expiration date for CFD, options traders must pay attention to the expiration date of their options contract. You must be thinking, "What's the beauty of trading options?" Options are like smartphones. You can choose to use a smartphone for its basic or advanced functions.

And options don't have to be all about Math and dry!

It can be made easy to understand through real-life analogies.

In the same way, you can implement basic and/or highly advanced strategies depending on your level of comfort. Options allow you to be versatile in adapting to the shifting market conditions and capturing opportunities in the process. Are you a CFD or options trader? I'm glad to be fluent in both. Finally, this is for educational purposes. Please 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!