In past articles I have described how to find and identify a swing that is more likely to hit. I have received requests to review the instructions so the first part of this article will be the quick steps to take. Skip ahead if you want to just see the Swing Alerts!
To pick a swing stock you need to see some specific things. First, the setup. The stock needs to fall a significant amount. Often this happens right after the stock price spikes up, but it doesn’t have to. As the price falls it should even out, like a parabola on a chart and reach a point of “resistance,” where the price doesn’t seem to want to fall lower.
Next you want to see some sort of pop in the price. Some might want to see it pop over the 20SMA. This spike will be met with pressure and will fall back down but not all the way to where it was before. It should settle just above that resistance. Let’s call the spike the first indicator. The 2nd indicator is the higher level of resistance.
Finally you want confirmation. In my opinion, confirmation of the swing happens when it spikes again, and either clears the first Indicator spikes price, or shows a Bullish Flag, Ascending Triangle, or other bullish chart setup. Sometimes I don’t wait for the confirmation to make a trade. On one hand, that’s risky. On the other hand, getting in before a Pennant forms would give you an extra 4% or more. If there is a news catalyst, recent insider purchases, an EA, or any combination of those, I might jump the gun and buy before the confirmation.
I’m sure I left some things open ended in that description, so feel free to send questions to my Facebook page. But let’s move on to the Swing Setups of the week. As usual, I will post the charts and then below make some quick observations, offer a price target, and suggest a subjective Risk/Reward ratio based completely on my opinion. There are MANY swing set ups this week, and I am not suggesting that they all start Monday. You’ll have to do some DD to make a decision if you choose to look closer at one of these companies:
PTI looks like a great swing setup. It has given us both indicators, with the spike and higher lows. We don’t have a perfect confirmation yet, but it has pushed higher for the most part since the indicator. If it were to fall below 4.55 the pattern would be bonk in my opinion. However, with a little strength Monday, the PT on this is between 5.50 and 6.00. Risk: Medium. Reward Potential: Medium.
ALT is still in its indicator stage, and therefore a little risky. But a trade before a confirmation would give one an opportunity to trade this twice, and could be very lucrative. If it were to hit perfect, a PT of 1.10-1.20 wouldn’t be unreasonable. Risk Medium/High. RP: High.
DRAD is a weaker set up, and also low volume, making it harder to guess what’s going to happen. However, it is showing higher lows, but seems to have skipped its indicator stage. PT: 1.55, Risk: Medium. RP: Low
FUND is showing the pattern, but the price to achieve is not that great. PT of 8.00, Risk: Low. RP: Low.
EKSO looks like a very strong set up. I see both indicators and even a confirmation. We may be a little late to the party, but the reward potential is there. PT: 1.90, Risk: Low/Medium. RP: Medium/High.
LSSC looks like another strong chart set up. It’s also a larger company then I typically recommend and will likely move with the overall market this week. PT: 6.15, Risk: Low. RP: Low
KPTI is another very strong set up. There are both indicators, a confirmation, and the last few days trading pattern shows a lot of bid support. PT $16.00, Risk: Low. RP: Medium/Low.
SEED is super risky, and yet the chart doesn’t seem to suggest so. If I didn’t know it was SEED I would call that a great setup. But the strength SEED showed last week as the confirmation could have easily been residual interest brought on from the RKDA action. PT: .93, then $.99, Risk: High. RP: High. I like to punish myself, so I will probably play this one.
KALV I included on the list because of the chart. But a deeper look puts me off. Reward potential so low that it’s not worth the purchase in my opinion. It’ll probably rise .40 or so.
ARLZ gave us the first confirmation, and the settle back down is happening. As it flattens out, if it seems to find strength at a higher level of resistance, then it’s worth getting in. PT: 1.75, Risk: Medium/High. RP: Medium.
MYND gave us the indicator last week, and if it stays where it’s at or rises, I would consider the 2nd indication spoken for. PT: 2.50, Risk: Medium/High. RP: Medium.
TNDM is back on the list. So many news catalysts coming that I can’t list em. However, last week it began to show a tiny swing back to the high 7’s, showed us a falling wedge that quasi hit, and is now showing a swing pattern. PT: $8.20, Risk: Low/Medium. RP: Medium, High if you’re looking to hold for a few months.
IFON I alerted to last week at the indication of the swing. I may have gotten ahead of myself by a few days, but the chart certainly continues to show us a swing setup. PT: $6.20, Risk: Medium. RP: Medium/High.
NCMI making the list for a third week isn’t necessarily extra bullish. It just means that the swing has been working, but is taking its sweet time. PT: 5.75, Risk: Low. RP: Low at this point. If you’ve been holding since the first alert, might as well wait for 5.75 with a tight TSL in my opinion.
LXU was alerted to a week or two ago. It’s been slowly adding, bit by bit. I expect it to continue, but the PT is not a huge windfall. PT: 7.00, Risk: Medium. RP: Low.
MNKD is another one that’s making the list, as a high high risk trade. There was a quasi confirmation pop towards the end of last week, but the higher lows doesn’t look like it’s taking effect yet. PT: 2.00, Risk: High. RP: High. I won’t be playing unless I see a bullish flag setup this week.
TEUM is another favorite of mine. The sell off after the EA is not justified. They spent more money, but they did that to begin new contracts. I believe there is a recovery play here. PT: 3.00, Risk: Medium. RP: Low/Medium.
TNTR is back on the list, but before you get too excited, we need to see some strength over the next week before I enter. I won’t be giving any PT, or risk analysis with this yet, but if I do alert to it this week, it’s because the price has moved above the latest high resistance.
ATRS is spending the last week on our Swing Alerts. It’s got another 10% tops to finish out the swing pattern. It’s been a great hold since the first alert though. PT: 2.56, Risk: Medium/High. RP: Low. If you’ve captured a large gain here set your TSL at 3% or less, because it could go into a free fall once it’s reached the top.
Nothing I’ve ever said in my life should be taken as investment advice. Even that time I told my brother to invest in his future and buy a helmet. It’s all speculation based off my opinion, which is lackluster at best. So instead of buying any of these because I happen to like the setup, do your own DD and make your own decisions. Thanks! #BIELESSONS