SWBI Smith & Wesson Brands Options Ahead of EarningsAnalyzing the options chain and the chart patterns of SWBI Smith & Wesson Brands prior to the earnings report this week,
I would consider purchasing the 12.5usd strike price Puts with
an expiration date of 2024-9-20,
for a premium of approximately $1.35.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
SWBI
Updated Swing Trading Watchlist - Pullback OpportunitiesHello Traders,
As we dive deeper into our trading strategy inspired by Mark Minervini, I'm excited to share a detailed analysis of our updated watchlist:
www.tradingview.com
This list is meticulously curated, focusing on stocks poised for potential pullback entries, suitable for short to medium-term trades. Here’s what we’ve analyzed:
Selection of Stocks in Strong Uptrends: Our primary filter is selecting stocks exhibiting strong uptrends over the past weeks or months. We use specific criteria like stocks trading above their 50-day and 200-day moving averages, a sign of enduring strength. Additionally, we look for stocks outperforming the market index, indicating relative strength.
Volume Analysis During Pullbacks: We observe the trading volume during pullbacks. An ideal scenario is a pullback on lower-than-average volume, suggesting a lack of selling pressure. A sudden increase in volume can sometimes signal capitulation, which might lead to a potential reversal.
Key Support Levels and Technical Indicators: Stocks approaching critical support levels, such as major moving averages or historical support zones, are of high interest. We combine this with technical indicators like the RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence) to gauge oversold conditions and potential bullish divergence.
Price Action and Chart Patterns: We're scrutinizing price patterns that align with Minervini's SEPA (Specific Entry Point Analysis) criteria. This includes looking for stocks forming bases, tight consolidations, or exhibiting orderly pullbacks without significant volume spikes. Flags, pennants, and narrow range days near support areas are particularly noteworthy.
Sector and Market Sentiment Analysis: Understanding the current market sentiment and sector rotation plays a crucial role. Stocks in leading sectors or those showing resilience in a weak market are preferred. We also consider the broader market trend and economic indicators to assess the overall risk environment.
Risk Management and Entry Points: Each stock on our watchlist comes with a predefined risk management plan, including stop-loss levels and potential entry points. We're waiting for a reversal signal, such as a high-volume rebound off a support level or a break of a short-term downtrend line, to initiate positions.
Earnings and Fundamental Check: While our focus is on technical analysis, we don't ignore fundamental aspects. We check upcoming earnings dates and ensure that the stocks have solid fundamentals, aligning with Minervini's preference for quality stocks.
Conclusion : This watchlist represents a blend of technical prowess and strategic foresight, aiming to capitalize on pullback opportunities in strong stocks. Remember, the key to successful swing trading lies in timing, precision, and risk management.
Stay alert for real-time updates as these setups evolve. Let's capture the market's rhythm together!
SMITH & WESSON Breakout long! $SWBIThis is a great spot for a long entry. $SWBI has broken out of it's channel and is looking to make a MASSIVE leg up!
Smith & Wesson Brands, Inc. is a holding company, which engages in the manufacture, design, and provision of firearms. Its portfolio includes handguns, long guns, handcuffs, suppressor, and other firearm-related products. The firm's brands are Smith & Wesson, M&P, Thompson/Center Arms, and Gemtech. The company was founded by Horace Smith and Daniel Baird Wesson in 1852 and is headquartered in Springfield, MA.
*Not Financial Advice*
Smith and Wesson Brands due for a local correction. SWBI.A huge impulse if forming. It literally shot off for this gun manufacturer, and we are not done yet in the general scheme of things - just that we are foreseeing a local correction.
This is a reflection using technical analysis + only and we do not consider valuation and macro factors at this stage.
The Fibonacci targets going down are highlighted in purple with invalidation in red. Fibonacci goals, it is prudent to suggest, are nothing more than mere fractally evident and therefore statistically likely levels that the market will go to. Having said that, the market will always do what it wants and always has a mind of its own. Therefore, none of this is financial advice, so do your own research and rely only on your own analysis. Trading is a true one man sport. Good luck out there and stay safe!
RGR back in da BUY ZONERGR has been a real undervalued gem in 2021. We NAILED the entry back in January, and I think this stock is getting ready to move again. The $70-75 area is a great value buy zone, with earnings just around the corner. It's sitting just above the .618, with some MACD divergence. With a 1.5%~ dividend yield this is a strong value. I am long via shares and the Aug 20th 80C from $1.55.
sold out everywhere....well this is consolidating nice along moving avg. perfect pullback to enter at high of day next week. though i feel it is a good swing trade rather then momo but can prob. go either way. election Biden win gonna explode trump win civil unrest = Guns and ammo..... Bought long calls into may and might trade
SWBItrading off the 10 & 20 EMAs, the daily is about to confirm the retest and signal an uptrend on the daily (green candle closing above the EMA cloud with the 10 over the 20) which could easily invalidate the idea published here: breaking down the right side of the blue "M".
If the "M" does play our as depicted, it will simply paint a larger "W" with an upside around $20, the resistance from our most recent major high.
Election Play - Buy Smith & WessonWith the election coming up, it is hard to imagine any other scenario besides a blowout. Regardless of your own political beliefs, Democrats are outnumbering Republicans in early voting which is objectively a huge advantage. Democrats seem to be motivated on removing Trump, and it is showing with the surge in voter registrations and early votes cast.
With that being said, Smith & Wesson's financials are solid and are benefiting from the pandemic's increase in gun sales. Not only that, based on The Economist's Election Model , Democrats are favorites in winning a majority in the Senate and the presidency. This will cause gun sales to go up even more. The stock is already about fair value, and it is hard to imagine not going up from here.
Long.
SWBI SHORT TERMHolding the current trend on the 15 min chart, moving higher in the channel. Possible that the election cycle has more people hoping for a 2016 repeat in SWBI.
BE CAREFUL, Could very easily crumble back to $15.00 by the end of November for a retest of the 10&20 EMA from the daily chart, if the election cycle doesn't push the demand higher.