4,000.
That’s where the S&P 500 futures shot up to the moment the inflation result was released.
Has it been a long awaited moment for you?
With such a strong bullish movement, the list of stocks to watch is longer.
Rollins (ROL) is still on my watchlist.
Its share price has flown further, and a pullback looks to be here real soon.
And here comes a good problem to have – not having enough cash to trade.
Jokes aside, let’s analyze the stock pick of the week – Halozyme Therapeutics.
Performance Of US Stock Market vs Halozyme Therapeutics (HALO)
To achieve a higher chance of success in trading stocks, you’ll want the stock which you’re going long on to be much stronger than the overall US stock market. Therefore, let’s compare the performance of the S&P 500 futures with the shares of Halozyme Therapeutics.
Despite a bullish week, the S&P 500 futures is still in a downtrend, shedding 8.2% since Mar 2022.
This downtrend began in early 2022 and looks set to continue.
On the other hand, the share price of Halozyme Therapeutics has been on a big uptrend, gaining a whopping 52.1% since Mar 2022!
Can you therefore conclude that Halozyme Therapeutics is significantly stronger than the overall US stock market?
Yes!
You’re done with the 1st step of analysis. The next step would be to determine whether the share price of Halozyme Therapeutics has been explosive enough for you to consider a swing trade.
How Explosive Is Halozyme Therapeutics (HALO)?
When it comes to swing trading, you’ll want the stock to be explosive in nature so that it’s worthwhile.
Let’s count the number of times the share price of Halozyme Therapeutics has rallied hard.
1, 2, 3.. 11 times!
In those 11 moments, the most explosive up moves measured between 6.8% and 27.3%!
For a company with a $7.3b market capitalization, this is some serious explosive price action.
I sense your excitement. It’s tough to contain it because of its spectacular up moves.
The very next step is to identify its key price levels.
Key Price Levels
Identifying its key price levels is critical in helping you spot opportune and optimal entry points, rather than buying with a sense of value.
Yes, these key price levels are also known as support and resistance zones.
Here, you can see that there are 2 support zones at ~$51 and ~$48.
Because the price of Halozyme Therapeutics has been on a sharp rise, it may drop in the coming days or weeks. And when this happens, it may fall to ~$51 before forming a new up move.
I’m keeping a close eye on this stock.
The Strategy You Can Use To Trade Halozyme Therapeutics (HALO)
After comparing the performance of HALO with the broader US stock market, determining whether HALO 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 HALO pullback to around $51 before considering an entry.
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 look for strong stocks like HALO.
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)!
Have a look at the AEP framework and incorporate this explosive trading strategy to your arsenal to capitalize on more swing trading opportunities.
Why Is Halozyme Therapeutics (HALO) The Stock Pick Of The Week?
Source: ir.halozyme.com/overview/default.aspx
Though the S&P 500 futures rallied last week, it’s still in a downtrend overall. This contrasts the performance of Halozyme Therapeutics’ shares.
The share price of Halozyme Therapeutics has been in a powerful uptrend, rising 52.1% since Mar 2022.
In addition, its share price has demonstrated to be explosive in nature, flying as much as 27.3% in a single up move!
Given that its current up move is steep, I anticipate a pullback to be on its way in the coming days or weeks. Only then will I consider swing trading it using the AEP framework.
While I await the opportunity, please keep in mind that I’m not a financial advisor, so please treat this as edutainment and conduct your own research.
Lastly, all photos and images are from unsplash.com, pexels.com, pixabay.com, and tradingview.com.
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