Swing Trading Opportunity: Packaging Corporation of America (December 2023)

Have you done all your Christmas shopping? 

The malls in Singapore and Malaysia are packed! 

I was in Malaysia for a short getaway and a cycling trip over the weekend. 

Yes, I went shopping too! 

As the shopping season enters full-steam ahead, shall we find out if there was an entry in last week's stock pick: Union Pacific (UNP)?

Source: up.com/index.htm

Union Pacific is in the railway industry, transporting goods all over the USA. 

Its share price is pulling back as planned. 

Have you set a price alert for Union Pacific?

This week's stock pick, Packaging Corporation of America (PKG), is likely to benefit from this shopping season too. 

Let's dive in!

Performance Of US Stock Market vs Packaging Corporation of America (PKG)

What can you tell from the comparison chart of the S&P 500 and Packaging Corporation of America's share performance?

There 2 things that you can tell:

1. The performance of Packaging Corporation of America's shares has been outperforming the S&P 500
2. The shares of Packaging Corporation of America are on a stronger uptrend

All these imply that the shares of Packaging Corporation of America are likely to continue outperforming the market, so you should dive deeper. 

How Explosive Is Packaging Corporation of America (PKG)?

It makes little sense to swing trade a stock just because its performance has outperformed the S&P 500. 

The stock being analyzed should be capable of huge explosive upmoves in a short period of time to make your trade worthwhile.

Packaging Corporation of America's shares have exploded in price 8 times in the past 9 months!

The smallest gain stands at 4.8% while the largest gain stands at a whopping 22.4%! 

With a market capitalization of nearly $15b, this is no easy feat.

In addition, selecting to swing trade a stock with a large market capitalization reduces your risk of market manipulation. 

Here comes the most important question: Is it time to buy its shares for a swing trade?

Key Price Levels

You'll find the answer by uncovering the key levels of Packaging Corporation of America's shares.

Can you see an area of support at ~$162?

Yes, key price levels are also known as support and resistance zones. 

Prices are likely to react and turn at these zones, so they are important to note. 

Hence, I am eyeing a bounce at ~$162, and I think that this could happen sooner rather than later.  

The Strategy You Can Use To Swing Trade Packaging Corporation of America (PKG)

After comparing the performance of PKG with the broader US stock market, determining whether PKG 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 PKG bounce at $162 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 PKG.

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 PKG Worth It?

The major shopping season is here, and PKG is in the business of manufacturing and selling corrugated packing products. 

Furthermore, PKG's performance has been superior compared to the performance of the S&P 500. 

This strong stock has also proven that it is capable of eye-catching up moves, even though it has a large market capitalization. This makes it a safe stock for a swing trade. 

While you 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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