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.
Speakers are blaring Mandarin songs, building the atmosphere up for the Chinese New Year in mid-Feb 2024.
Fresh decorations are up, with lanterns and dragons being the most popular design.
Dragons exude strength and majesty. They are a sign of good luck and prosperity.
It’s little wonder that many are excited to usher in the year of the Dragon.
Just before I share 2 hidden gems that you could profit handsomely from, let’s recap the 2 stocks shared last month: Murphy Oil and Petroleo Brasileiro.
Murphy Oil’s share price hasn’t gone our way yet, while Petroleo Brasileiro’s share price can’t seem to stop rising!
Did you enter a position trade on last month’s stock picks?
Without any delay, let’s analyze this month’s stock picks.
StoneCo (NASDAQ: STNE)
Source: investors.stone.co
1. About the Company
StoneCo is a financial technology and software solutions provider.
Founded in 2000, it has grown to have a 2.6m strong client base.
Its business has attracted top investors such as Blackrock and Berkshire Hathaway.
With the top fund managers’ stamp of approval, is StoneCo’s share price primed to rise?
2. Position Trading (Daily)
Can you tell that the share price of StoneCo is in an uptrend at a glance?
You don’t need to draw trendlines or put on a moving average.
The color of the candles can help you. When you see more blue candles (outlined or solid) than red (outlined or solid), you can conclude that its share price is in an uptrend.
Again, without the need to put on technical tools, you can tell if the time to buy its shares for a position trade is here.
How?
By focusing on the 2 main indicators – the green arrow and the Trend Impulse Factor.
When there’s a green arrow under the most recent candle, a fresh bullish burst is here.
A look at the color of the bar of its Trend Impulse Factor indicator will reveal if the momentum is likely to continue for a position trade.
Both are present in the chart of StoneCo, suggesting that it’s ripe for a position trade!
Unilever (NYSE: UL)
Source: unilever.com
1. About the Company
Unilever is a fast-moving consumer goods company founded in 1860.
It is home to a wide range of fast-moving consumer goods products, ranging from desserts to personal care.
Through mergers and acquisitions, the company has grown in size to become a $120b company.
Is this growth likely to be sustainable?
Should you be investing in its shares for a position trade?
2. Position Trading (Daily)
Let’s have a look at its price chart to help answer your questions.
Similarly, you don’t need any other technical indicators and tools to determine whether you should buy or short its shares for a position trade.
Can you tell that the overall trend is bearish?
You’ll therefore want to be on the lookout for a red arrow above its latest candle.
And we have a red arrow!
However, the time to short its shares isn’t here yet, as suggested by the color of the Trend Impulse Factor indicator’s bar.
Nonetheless, it’s a good idea to keep this stock in mind because a position trading opportunity is likely to appear soon.
Conclusion
Source: unsplash.com
2 stocks have been shortlisted for a position trade in February. They are vastly different, and the market has different opinions on them too.
StoneCo is a technology company that the market endears. In addition, the time to buy its shares for a position trade is here!
Unilever is in the consumer staples sector, and the market isn’t optimistic about its shares. Based on the indicators, the time to short its shares isn’t ripe yet.
Trading stocks without a proper system can be highly risky. This is why TGPS was created. The indicators will 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.
What are your thoughts?
Share your thoughts with me below!
