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.
Welcome to our 15th part of our series on Systematic Trading!
In this part, you’ll discover two stocks that are listed in the US. Furthermore, these stocks are exciting as they look like they present opportunities.
Before you scroll further, you’ll want to check out our stock pick in November on Alphabet and Euronav.
Are you ready to check out Elanco Animal Health and UnitedHealth to discover if they are ready for a position trade?
Elanco Animal Health (NYSE: ELAN)
1. About the Company
Elanco Animal Health was founded in the 1950 to provide healthcare for animals.
Shortly after its incorporation, it introduced the 1st antibiotic exclusively for animal use.
Through acquisitions and research, Elanco Animal Health grew from strength to strength, expanding its line of veterinary products and entering new countries.
Elanco Animal Health has been enjoying great success in providing healthcare for animals. Is this showing on its price chart?
Let’s find out!
2. Position Trading (Daily)
A quick glance of the price chart of Elanco Animal Health tells me that it’s no go to buy its shares.
This is because its share price is in a downtrend. This downtrend doesn’t seem to be halting any time soon too!
Is there a shorting opportunity then?
Let’s have a look at the appearance of the red arrow and the Trend Impulse Factor indicator.
There’s a red arrow above the latest candle of Elanco Animal Health. This tells us that the sentiment of the shares of Elanco Animal Health is bearish and a downtrend is resuming.
Moving to the Trend Impulse Factor indicator, you’ll want its bar to be in dark green as this confirms the bearish momentum.
The bar of Elanco Animal Health’s Trend Impulse Factor isn’t dark green in color, suggesting that this bearish momentum is unlikely to continue for the time being.
Hence, the timing for a short position trade on the shares of Elanco Animal Health isn’t here just yet!
However, a shorting opportunity may be present in the month of December 2022.
Keep your eyes on this stock!
Shall we now turn our attention to another healthcare stock?
UnitedHealth (NYSE: UNH)
1. About the Company
Founded not too long ago in 1977, UnitedHealth grew extremely fast.
UnitedHealth soon started its first pharmacy benefit management through its subsidiary.
This proved to be a huge success as its subsidiary was acquired for a staggering $2.3b in 1994, just 6 years later! This was back in the days where the pace of life was much slower given the lack of communication technology.
Flushed with cash, UnitedHealth went on an acquisition spree, spending more than $1.65b on 2 companies.
Through research and development and mergers and acquisitions, UnitedHealth grew to the company we know today.
How are all these reflected in its share price?
Let’s find out in the next section.
2. Position Trading (Daily)
UnitedHealth’s share price has been in an uptrend. The downtrend in the broad US stock market didn’t negatively affect the performance of UnitedHealth’s share price.
This is a sign of strength, qualifying UnitedHealth as an outperformer.
Does this mean that you should buy UnitedHealth’s shares now for a position trade?
Let’s have a look at what the 2 special indicators say.
Is there a green arrow under the latest candle of UnitedHealth?
The green arrow appeared on the previous candle, suggesting that the timing to buy UnitedHealth’s shares could be a little late.
Next, let’s have a look at the Trend Impulse Factor.
The bar of the Trend Impulse Factor isn’t dark green in color. This implies that the shares of UnitedHealth are lacking momentum.
Without sufficient and prolonged momentum, profiting from the stock market will be an uphill challenge.
Because of this, shares of UnitedHealth are not ready for a position trade yet. However, this may change in the later part of Dec 2022.
Both Elanco Animal Health and UnitedHealth are companies with a storied history. They’ve enjoy tremendous growth through innovation, strong leadership, and mergers and acquisitions.
However, this doesn’t automatically mean that their share prices are all ready for a position trade.
Because the share price of Elanco Animal Health is falling, there’s possibly a short-selling opportunity if the red arrow and Trend Impulse Factor’s dark green bar appear.
UnitedHealth’s share price has been enjoying a fantastic run to the moon.
But the indicators aren’t confirming this bullish move right now.
Because the stock market doesn’t behave according to our instructions and hopes, it’s advisable to place a stop loss level to protect your trading capital, should an unexpected event occur.
Trading stocks without a proper system can be highly risky. This is why TradersGPS (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 us below!
What should you do in Q4 2022 to grow your portfolio?
Stocks have been really choppy the past few weeks.
But as usual, it’s not the 1st time we have seen such volatility and it pays to constantly remind ourselves to focus on the charts and react accordingly.
The WORST thing you can ever do in a volatile market is to trade aggressively.
Before you know it, reversals will come and go at the most unexpected times to wipe you out.
This is why during such volatile times, you MUST know how to use the right strategies.
In fact, I can tell you as a trader of over 20+ years, profiting in a volatile market is not difficult.
The key here is to NOT fight the volatility head-on.
Lots of people like to challenge the volatility head-on, trying to make predictions or day trade and think they can exit with profits before a reversal happens.
That to me is fighting a losing battle.
Rather, 1 important concept you should understand is this – A volatile market does not mean ALL stocks are volatile.
As you are reading this right now, there are many stocks out there with strong persistent trends that we can capitalize on.
The only part that can be challenging is finding these ‘hidden gems’.
But once you know how to find them, you will literally possess a weapon that can help you find winning stocks with high win-rate while carrying very little risk.
As we see the market continuing to be volatile in the coming weeks…
It’s extremely important to know where and how to find real opportunities and what proven strategies to use that are meant for such situations.
I will be sharing certain strategies that work exceptionally well in such volatile situations to identify and sieve out winning ‘hidden gems’ stocks to capitalize in my upcoming LIVE training (100% free).
Click HERE and join me in my upcoming LIVE training…
And I will show you the full process from identifying winning stocks all the way to executing the trade, and how it can be done in just 15 minutes.
I will also be opening up questions to the floor where you can ask me to analyze ANY stock of your choice,
and I will show you how the TradersGPS system can help you determine if it’s a good buy, WHEN to buy, and WHEN to sell for profits.
Click HERE to register your seat before we hit full capacity!