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.
Although the top leaders of Iran have been killed, the conflict in the Middle East continues to escalate fast. Iran’s neighbors are now drawn into the battle.
Will foreign soldiers set foot on Iranian soil? If they do, what’s likely to happen with regards to the US stock market and economy?
In times of huge uncertainty, volatility shoots through the roof. Growth stocks and many favorite stocks get hit hard. Is there anything you can do to help tide through this extremely volatile period?
After scanning the market, I’ve uncovered 2 stocks that have proven to be resilient in volatile periods. Resilient is an underestimation because they have been soaring lately.
Before I introduce my findings, you may want to review the performance of the 2 stocks shared in February.
BrightSpring Health (NASDAQ: BTSG)
Source: brightspringhealth.com
1. About the Company
BrightSpring Health began as a traditional home services company in 1974.
Over time, the company expanded to specialize in pharmacy and clinical provider services.
Through a strategic rebranding and change of ownership, the company expanded faster than before, with the ability to better integrate pharmacy and clinical services for its customers.
Is it a good idea to buy its shares for a position trade? Let’s analyze its stock chart to find out.
2. Position Trading (Daily)
There are a few important details that you can glean from the chart above.
The first important detail is the price trend of the shares of BrightSpring Health.
Can you tell that its share price has been in a solid uptrend?
This can be inferred by comparing the number of red candles (outlined and solid) against those in blue (outlined and solid). Yes, this is without the need to plot trendlines or use other technical indicators such as the moving average.
Now that you know its price trend, it’s time to look at the 2 proprietary indicators – the green arrow and Trend Impulse Factor.
Do you see a green arrow under its latest candle?
The presence of that green arrow tells you that this bullish move is fresh.
Next, let’s look at the color of the bar of its Trend Impulse Factor.
A dark green bar suggests that this fresh uptrend is likely to be sustainable.
Do you like what you see?
The presence of the green arrow and the Trend Impulse Factor’s bar in dark green is positive news!
Hence, I think that the time to buy the shares of BrightSpring Health is here.
Centene (NYSE: CNC)
Source: centene.com
1. About the Company
Centene began as a nonprofit Medicaid program service provider for the low income population in 1984.
More than 10 years later, it transformed into a for-profit organization providing government-sponsored health programs.
Centene grew stronger and acquired several of its peers to expand its reach in this niche.
Here’s the most important question: Does the market love its stock as the company grows from strength to strength? Let’s turn to its stock chart to find out.
2. Position Trading (Daily)
Let’s analyze the share price of Centene together.
Can you tell the price trend of its shares?
Centene’s shares were in a downtrend until Aug when market participants turned optimistic.
Yes, you can compare the number of blue candles (outlined and solid) against those in red (outlined and solid) without the need of other technical indicators. When there are more blue candles than red, the share price of that stock is in an uptrend.
Knowing that Centene’s shares are in an uptrend, it’s time to look at the 2 proprietary indicators – the green arrow and Trend Impulse Factor.
Is there a green arrow under its latest candle!
There is! This signals a fresh bullish move.
Next, what’s the color of the Trend Impulse Factor’s latest bar?
It’s not dark green yet. This means that the bullish momentum may not last.
But, I’m still keeping an eye on this stock because it has demonstrated strength in this volatile period. Its Trend Impulse Factor bar could turn dark green soon, indicating that Centene’s shares are ripe for a position trade.
Conclusion
The conflict in the Middle East has drawn more countries into it. This worries investors around the world. Many are shifting their money out of growth stocks, pouring their money into defensive stocks such as BrightSpring Health and Centene.
This is evident in the rising share prices of both companies. But is the timing to buy their shares ripe?
To help me make an informed decision, I turn to the TradersGPS (TGPS) system for clarity.
Instead of staying clear of the market, you may want to rely on the TradersGPS (TGPS) system that’s created to help you determine if a stock is ready for action to be taken. You won’t have to feel in the dark and make wild guesses.
Our proprietary indicator shows that a fresh bullish move has been spotted in both BrightSpring Health’s and Centene’s shares.
The Trend Impulse Factor indicator tells us that this fresh bullish move is likely be sustainable for BrightSpring Health, so the time to buy its shares for a position trade is ripe.
Although the shares of Centene aren’t ready for a position trade, I’m keeping it in my watchlist because I sense a position trading opportunity appearing soon.
Which stock do you prefer buying for a position trade? What are your thoughts?
Share them with me below!
