BWXT / BWX Techn / Chart looks to the upsideThis is my seasonal and chart technique interpretation and forecast.
This is not a trade call for you guys but I d like to discuss this with you and see how it this turns out.
From today to 1st of March, i believe, this can be a profitable trade!
God Luck
Cheers!
BWXT trade ideas
BWXT: added to our 'Momentum, Growth & Innovation'-PortfolioBWXT has been added as a new trade to our 'Momentum, Growth & Innovation'-Portfolio with 10% of total equity.
Here is a detailed analysis of the trade:
Technical Observations:
BWXT is fluctuating above its 50-day and 200-day moving averages, which suggests an overall bullish trend. The Bollinger Bands indicate a range where the stock has been trading, with recent price action closer to the lower band, potentially offering a good entry point as per Minervini's strategy.
Volume and Price Action:
The volume seems to be lower on down days, which could indicate a lack of seller conviction. This can be seen as a positive sign if you're looking for a potential upward movement.
Relative Strength Index (RSI):
The RSI is not in the overbought territory, which means there could be room for upside before the stock is considered overbought.
Fundamental Factors: The market capitalization of $7.04B and a dividend yield of 1.19% suggest a stable company. A P/E ratio of 31.74 is on the higher side, indicating investors may expect higher earnings growth. The earnings per share (EPS) of $2.43 is a critical figure for evaluating the company's profitability.
Growth and Profitability: The fundamental slide indicates the company’s performance in terms of revenue, net income, and net margin percentage. It appears there has been some volatility in net income margins, which could be a risk factor.
Here is a link to the fundamental data of this trade:
www.tradingview.com
Position Sizing:
Using 10% of your equity for this trade aligns with the concept of position sizing, which is critical in Minervini's strategy. It's essential to manage this position carefully and be ready to cut losses if the trade goes against the expected trend.
2) Summary of Minervini Trading Strategy
Trend Template: Minervini emphasizes stocks in a strong uptrend, above key moving averages, and showing outperformance against the market.
Volatility Contraction Pattern (VCP): He looks for stocks that have gone through periods of price contraction on lower volume, indicating potential for a breakout.
Relative Strength: The stock should be one of the market leaders, with a high relative strength rating.
Risk Management: Minervini is strict about cutting losses quickly to preserve capital. He advises setting a stop loss at the point where the original trade thesis is invalidated.
Entry and Exit Points: He advocates for entering trades as they break out from sound base patterns on higher volume, and exiting based on specific sell rules to capture the bulk of a stock’s advance without giving back significant gains.
Fundamental Analysis: While Minervini is a technical trader, he also considers strong fundamentals as a backbone for a stock's potential to succeed, looking for companies with strong earnings growth, return on equity, and profit margins.
BWXT is positioned for steady and robust US Navy.There definitely a bipartisan support for higher naval spending to counter China will help offset labor constraints that continue to plague the naval supply chain.
BWXT also has a business in Uranium processing and related products.
In its daily timeframe, a decisive rally above 67.50 would confirm an April 2018 into June 2023 big base with upside potential to pattern counts at 81, 91 and 100-102. Until then, holding chart support and rising 26 and 40-week moving averages (MAs) from 63 to 60 would keep this bullish setup in place. The rising 200-week MA near 57.30 and the January low at 55.47 offer additional support.
Defense stocks idea: BWXAerospace and defense stocks have enjoyed relative strength in generally risk-off years with geopolitical risk.
One submarine name features a high valuation and risky chart, though.
I see more downside risk than upside potential in shares of BWX Technologies after a solid 2022.
BWX TECHNOLOGIES (BWXT) potential BOThe aerospace and defense industry continues to be relatively strong compared to the general market. A new setup that I will be following this week is BWX Technologies (BWXT):
BWXT retested the supply zone at 57 on 29.07 and this proves to be an important price level. You can see from the attached chart that the level was tested 4 times in recent months.
The stock might need a catalyst to break the supply zone and this catalyst could be just around the corner. Quarterly earnings report will be on 08.08 and in case the results prove to be positive, we might see BWXT flying higher.
BWX TECHNOLOGIES Idea DailyHey traders, BWX TECHNOLOGIES is in a fake bearish move with a reset on a sellers bull candle and full bullish volume. We notice on the TIMEFRAME 1 Min a refusal of the sellers on a bear candle as we can see on the shadow. BWX TECHNOLOGIES is going towards its last low point which is located on the Vwap, it is very plausible that it will rebound. To jump a second time upwards to reach its next high.
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BWX Technologies, Inc. on verge of breakout pre earnings
Alert set for breakout above $72.00
is a little overbought so would expect a backtest if it manages to breakout
company profile
BWX Technologies, Inc. engages in the supply and provision of nuclear components and products. It operates through the following business segments: Nuclear Operations Group, Nuclear Services Group, and Nuclear Power Group. The Nuclear Operations Group segment focuses on the design and manufacture of equipment for nuclear applications. The Nuclear Services Group segment includes nuclear materials processing, environmental site restoration services and management, operating services for various government-owned facilities, and inspection and maintenance services for the commercial nuclear industry. The Nuclear Power Group segment involves in the design and manufacture of commercial nuclear steam generators, heat exchangers, pressure vessels, reactor components, and other auxiliary equipment such as containers for the storage of spent nuclear fuel and other high-level nuclear waste. The company was founded by Stephen Wilcox and George Babcock in 1867 and is headquartered in Lynchburg, VA.
BWXT - Momentum Upward channel breakdown from $59.73
BWXT seems breaking down from a long-term upward channel formation. Twiggs money flow crossed to the negative side. It also had lots of insider selling. We think it has good downside potential.
* Trade Criteria *
Date First Found- December 26, 2017
Pattern/Why- Upward channel breakdown
Entry Target Criteria- Break of $59.73
Exit Target Criteria- Momentum
Stop Loss Criteria- $63.24
Indicator Notes- Twiggs money flow crossed down to negative side.
Special Note- Lots of insider selling
Please check back for Trade updates. (Note: Trade update is little delayed here.)