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.
Did you have a great Easter and Qing Ming weekend?
If you traveled to Malaysia last weekend, I hope that you weren’t caught in the massive traffic jam that stretched over 4 hours.
Singapore felt much quieter and less crowded during the long weekend. As we enjoy the peace and security here, unfortunately, the same cannot be said in the Middle East.
President Donald Trump seems to have extended his deadline for Iran to sign a deal with the US. Will a deal be agreed? I’m not that optimistic.
As this war rages on, I’ve uncovered a potential position trading opportunity using our proprietary trading system. This stock has surged by over 500% (nearly 550% to be more exact) in just 1 year.
Are you excited to analyze this stock together?
Brief History of ViaSat
Source: investors.viasat.com
ViaSat is a technology company founded in 1986.
The company provides communication services such as broadband and narrowband solutions to companies and governments. ViaSat also provides integrated solutions that include cybersecurity and encryption used in Defense and other industries.
ViaSat is an innovative and fast-paced company. Soon after its founding, it launched its 1st product line. Over the next few years, more products were released, equipping the Defense forces with advanced technology.
Through smart acquisitions, the company expanded its offerings and entered the commercial space.
As the company continues to grow and innovate, are its shares worth buying for a position trade?
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 yellow).
Did you notice that the total revenue of ViaSat grew every year except for 2020?
This consistent increase in its total revenue is highly welcomed in any sector.
Here’s another important fundamental metric to consider: net income.
Can the same be said of its net income?
ViaSat’s net income has been largely negative, with the year 2020 being the only exception. This is normal for high-growth and innovative companies that focus on research and development. Therefore, I don’t see any cause for concern regarding its net income.
Are these strong enough reasons to consider buying the shares of ViaSat for a position trade?
Let’s have a look at its stock chart to provide more clarity.
Technical Analysis on ViaSat (NASDAQ: VSAT)
This is the chart of ViaSat’s stock.
What can you infer from it?
I can tell that ViaSat’s shares are in a strong uptrend. With the bulls in charge, you’ll see more blue candles (outlined and solid) compared to those in red.
Knowing this, I’ll look for a buying opportunity.
Do I 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, I don’t have to.
All I need to do is refer to the 2 proprietary indicators – the green arrow and Trend Impulse Factor.
When there’s a green arrow under a blue (outlined or solid) candle, it signals a fresh bullish move. Do you see it under its latest candle?
Let’s turn our attention 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.
The shares of ViaSat look ripe for a position trade!
Conclusion
Source: pexels.com
As the war in the Middle East drags on, spending in the Defense industry is likely to increase and remain high.
Using the scanner that comes with the TradersGPS (TGPS) system, this gem was uncovered.
ViaSat provides communications solutions for the commercial and defense industries. Thus, the company is likely to continue enjoying a bullish run.
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 ripe for a position trade.
What are your thoughts?
Share your thoughts with me below!
