This article is for education purposes only, and not to be taken as advice to buy/sell. Please do your own due diligence before committing to any trade/investment.
Volatility spiked in the US stock market on Friday night. President Donald Trump reignited its trade war with China publicly on social media by imposing an additional 100% tariff on Chinese products and an export control on critical software.
That social media post sparked mayhem in the financial markets.
Before the weekend ended, President Donald Trump was at his game again. This time, he calmed the markets by stating that all would be fine.
Asian markets opened sharply lower, but began climbing as time progressed. The US futures jumped at its opening and remain bullish.
This is part and parcel of trading. Are you prepared to embrace increased volatility?
Although the swings can be wild, with a trading plan and system, it’s easier to navigate the stock market.
Using our proprietary trading system, I’ve uncovered a position trading opportunity for this stock – Rollins.
Brief History of Rollins
Source: rollins.com/financial-info
Founded in 1948, the company focused on pest control.
Its effective pest control methods led to its quick growth, opening franchises in the US.
Through multiple shrewd acquisitions, Rollins expanded its territory to include Canada, Singapore, UK, and more. The company has also expanded its services to include the wildlife market.
Here comes the next important question: Has the company been growing?
Business Model and Financials
Source: tradingview.com
Let’s look at 2 key metrics from the image above – total revenue (in blue) and net income (in purple).
Did you notice that the total revenue of Rollins grew every year from $1.8b in 2018 to $3.4b in 2024?
This consistent increase in its total revenue is highly welcomed in any sector.
Here’s another important fundamental metric to look at – net income.
Rollins’ net income has been consistent in recent years as well, growing from 2020 to 2024, performing well even when COVID-19 was raging on.
Are these strong enough reasons to consider buying the shares of Rollins for a position trade?
Let’s have a look at its stock chart to provide more clarity.
Technical Analysis on Rollins (NYSE: ROL)
This is the chart of Rollins’ stock.
What’s the first thing that you can tell from it?
For me, I can tell that the bullish momentum is back. How?
By looking at the color of the candles. If the candle is blue in color (outlined or solid), coupled with the presence of a green arrow, a fresh uptrend is here.
Knowing this, you’ll want to search for a buying opportunity.
Do you need to plot support and resistance, trendlines, or slap on other indicators to help you determine the right time to buy its shares for a position trade?
Nope, you don’t have to.
All you need to do is refer to the other proprietary indicator – Trend Impulse Factor.
The Trend Impulse Factor indicator is curated to inform traders whether the move in the market is likely to be sustainable, giving you and I an edge.
When the bar of the Trend Impulse Factor indicator is dark green in color, it suggests that this bullish move is likely to be sustained. Now, let’s have a look at the color of the Trend Impulse Factor indicator’s bar.
It’s not dark green in color yet, suggesting that the time to buy its shares for a position trade isn’t ripe yet.
However, I think that it’s about to turn dark green in the coming days or so, so I’ll be watching this stock extra closely.
Conclusion
Source: pexels.com
After months of a strong bull run, volatility has returned thanks to the reignition of the trade war between the US and China.
The stock market dislikes volatility, but this stock has stayed resilient, even in the chaos caused by COVID-19.
Using the scanner that comes with the TradersGPS (TGPS) system, this gem, Rollins, was uncovered.
This company is solid, experiencing growth in its total revenue and net income. In addition, market participants are highly optimistic of its shares.
Both the arrow and Trend Impulse Factor indicators have been tested and proven. They form the TradersGPS (TGPS) system to help you decipher if a stock is ripe for a position trade. You won’t have to feel in the dark and make wild guesses.
Relying on the green arrow and the color of its Trend Impulse Factor indicator, I can tell that its shares are not ripe for a position trade for now.
However, I’ll keep this stock in my watchlist because I anticipate an entry appearing soon.
What are your thoughts?
Share your thoughts with me below!
