Did you find last week extremely colorful?
I mean, there were a couple of high-profile and interesting events that occurred, namely the sentencing of Singapore’s ex-minister S Iswaran, Ong Beng Seng getting charged, and the bazooka stimulus rolled out by the Chinese government.
The huge stimulus in China had rippling effects around the world.
It had propelled the Hang Seng index beyond the 20,000 mark, the 1st time since Aug 2023. Yes, that’s slightly more than 1 year.
Crowd favorite, Meituan, shot up 33.3% in a week!
If you have gains from the Hong Kong market, you may want to take partial profit because such a gravity-defying move doesn’t usually end well.
Let’s turn our focus back to the US stock market and review last week’s stock pick – Builders FirstSource (BLDR).
Review Of Last Week’s Pick Of The Week
Builders FirstSource (BLDR) was our #PowerStocks pick last week.
The company manufactures and supplies building materials and components.
Noticing that its share price had returned to its support area of around $192 and bounced, you would’ve bought its shares last week.
Its share price rose for 4 days in a row until Fri when its share price got pushed back to $192.
Is this a cause for concern?
I don’t think so.
There’s a good chance of its share price rising to this price shared in my Telegram Channel.
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Why Is Swing Trading Johnson Controls (JCI) Worth It?
Source: tyco.com
Johnson Controls belongs to the Industrials sector.
It deals with building products, and provides energy solutions, integrated infrastructure, and transportation systems.
Money is flocking into its stock, continually pushing its share price to new 52-week highs.
When compared to the performance of the S&P 500, the shares of Johnson Controls have emerged top, beating the S&P 500 performance by a margin of 3.4x in the last 3 months.
And I see an explosive swing trading opportunity emerging soon.
So, 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 Johnson Controls (JCI)
Because you are searching for a stock to explode in price, you’ll want the stock to be in a strong uptrend.
Can you tell that the share price of Johnson Controls is in a powerful uptrend from the chart above?
In addition to identifying its price trend, you’ll want its performance to be stronger than the S&P 500.
Why?
If the stock you are considering constantly underperforms the S&P 500, you’d be better off trading the S&P 500.
Here, the shares of Johnson Controls have been consistently outperforming the S&P 500.
In the last 3 months, the share price of Johnson Controls has risen by 13.1% as compared to 3.8% by the S&P 500.
That’s a whopping 3.4x outperformance!
Ok, the shares of Johnson Controls passed the 1st round of analysis.
Let’s continue analyzing its shares.
How Explosive Is Johnson Controls (JCI)?
Have the shares of Johnson Controls proven to be explosive?
I’ve counted and measured its up moves to save you from performing Math.
In the last 11 months, the shares of Johnson Controls have exploded between 5.2% and 22.1% 11 times!
Knowing that Johnson Controls is a $50.5b company, such upmoves are jaw-dropping.
The shares of Johnson Controls have the ability to explode in price consistently.
What’s next?
Is it time to buy its shares for an explosive swing trade?
Key Price Levels
I don’t think the time to buy its shares for an explosive swing trade is here.
Did you spot a key price level (aka support and resistance) around $72.80?
As the share price of Johnson Controls is pulling back, I figure that it could continue to drop in the coming days to around $72.80 before taking off.
Therefore, I’ll patiently wait for this scenario to play out before buying its shares for an explosive swing trade.
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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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?
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