Extreme Networks: #PowerStocks Series Pick Of The Week (August 2024)

2 weeks ago, doom and gloom headlines flooded the media. The Nasdaq futures dropped 17%, and the S&P 500 futures slid 10%. A big recession is here, several analysts claimed. I don't think the bear market is here, although the stock market could remain weak and volatile in the next few months. Presently, the US stock market is staging an impressive recovery. The bulls are back with a vengeance. Before sharing this week's #PowerStocks pick, shall we review last week's stock pick: WEC Energy (WEC)?

Review Of Last Week's Pick Of The Week

WEC Energy (WEC) was our #PowerStocks pick last week. It belongs in the Utilities sector and has dipped to the support level of around $87 before rising along with the stock market since. Did you catch this trade? I'm happy for you if you did! Where can you consider taking profit? I've shared the price area you can consider taking profit in my Telegram Channel.

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Switching back to this week's stock pick, what's the swing trading opportunity in Extreme Networks (EXTR) that I see emerging? Let's find out together.

Why Is Swing Trading Extreme Networks (EXTR) Worth It?

 

Source: investor.extremenetworks.com

Extreme Networks (EXTR) belongs to the technology sector. The company serves a diverse customer base, from the federal government to the largest football clubs in England. As optimism returns, it's time to shift your attention to technology stocks. This stock has also caught the attention of astute traders. Astute traders have been buying this stock lately, and this is evident from its recent rally. Furthermore, its recent performance is almost 5x more than the S&P 500! Here's the best part. A pullback is here, signifying that another opportunity for an explosive swing trade could be near. What's the game plan? 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 Extreme Networks (EXTR)

Identifying the trend helps you decide whether you should be looking to buy or short stocks. And this can be seen from the comparison chart above. Because the share price of Extreme Networks is in a massive uptrend, you'll want to look for buying opportunities. In addition, while the S&P 500 brought a return of 4.8% in the past 3 months, Extreme Networks' shares have brought an eye-popping 21.2% return in the same duration. That's an eye-popping 4.4x more! Such outperformance is uncommon and pretty extreme. Did you get the pun? Extreme Networks' shares should be analyzed further for a swing trading opportunity.

How Explosive Is Extreme Networks (EXTR)?

Here, the key question is whether its shares deserve your money. Will your trading capital be put to effective use by propelling higher in a short amount of time? In the past 10 months, the share price of Extreme Networks has exploded 15 times! More remarkably, 6 out of these explosive upmoves took place while its share price was in a firm downtrend! Since June, the market has begun favoring its shares, which have been experiencing explosive upmoves measuring double-digits (except in late-July 2024). I see you drooling. Let's determine whether the time to buy its shares for a swing trade is here in the next section.

Key Price Levels

To determine whether the shares of Extreme Networks are ripe for an explosive swing trade, let's uncover its key price levels. These are also known as support and resistance areas. Did you identify its support area at around $14? As its share price pulls back, its shares are likely to reach ~$14 before heading higher. That's the scenario I'll be waiting for to buy the shares of Extreme Network for an explosive swing trade. What price is its shares likely to rise to? Noticing a resistance area around $16.20, I'll be keen to sell them at that price area, for a cool 15.7% return! 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. 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.

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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!