Swing Trading Opportunity: Fastly (September 2023)

Where do you save your documents and photos?

Gone are the days where I use external hard disks and thumb drives. 

I rely on the Cloud to store my data because it's a lot more convenient. 

And cloud computing is what this week's stock, Fastly, provides. 

Before diving in, I'd like to have a short review on Cisco (CSCO) that was shared last week. 

After an astounding rise in Aug while the S&P 500 was falling, the bulls in Cisco's shares are taking a break. 

This was anticipated. 

Cisco's share price should continue to fall for a short while more before exploding upwards in price. 

I'll be watching its shares closely. 

Switching back, let's analyze this week's swing trading opportunity: Fastly (FSLY). 

Performance Of US Stock Market vs Fastly (FSLY)

At this stage of analysis, you'll want to

1. Identify the trend of the stock
2. Ensure that the stock is beating the S&P 500 

Can you tell that Fastly's share price is in an uptrend? 

This signifies that you'll want to look for buying opportunities your chances of success increase when you go with the trend.

The performance of Fastly's shares against the S&P 500 has been inconsistent in June and July 2023.

However, a surge in bullish momentum send its share price high, and it has been beating the S&P 500 since Aug 2023.

Great! 

Let's have a look at the behavior of its share price. 

How Explosive Is Fastly (FSLY)?

Here, you'll want to find out if the upward moves of its shares are explosive enough to be worth your time. 

Getting stuck in a slow moving stock is a huge opportunity cost.

To help you find out if the shares of Fastly are worth your time, I'd marked out the 10 explosive up moves in 2023. 

How impressive are these up moves that measure between 13.3% and 71.8%?

For a $3b market capitalization company, this is pretty impressive! 

Therefore, you'll want to continue analyzing this stock, looking out for a sweet entry point.

Key Price Levels

How can you find a sweet entry point?

You can do so by plotting the key price levels, which is also known as support and resistance zones.

Did you manage to spot this immediate support zone at ~$21?  

This price area is significant because its share price is likely to drop to that region before bouncing. If you buy its shares just after the bounce, you are increasing your odds of success.

Hence, I'm waiting for its share price to fall to ~$21 before considering to enter for a swing trade.  

The Strategy You Can Use To Swing Trade Fastly (FSLY)

After comparing the performance of FSLY with the broader US stock market, determining whether FSLY 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 FSLY pullback and bounce at around $21 before considering an entry for a swing trade.

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 screen stocks for swing trading like FSLY.

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)!

Can you apply the AEP framework to provide you with a side income while working full time? 

Yes, you can! 

Come, have a look at the AEP framework and incorporate this explosive trading strategy into your arsenal to capitalize on more swing trading opportunities.

Why Is Swing Trading FSLY Worth It?

Source: fastly.com

The future of cloud computing looks bright. Fastly is a provider of cloud computing, giving it an edge over other companies. 

As the S&P 500 retreated in Aug 2023, Fastly's share price rose to outperform the S&P 500. This superior performance meant that its shares are worth a look.

Fastly's shares have also proven to be explosive in the past 8 months. The largest up move stands at an eye-popping 71.8%! You'll be more certain that your money will be working extremely hard for you. 

While we wait for the setup, please keep in mind that I'm not a financial advisor, so please treat this as infotainment and conduct your own research.

Lastly, all images are from pexels.com, pixabay.com, sectorspdrs.com, tradingview.com, and unsplash.com.

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