Man, if you don’t already know, New Hampshire winters SUCK!
Combine that with the fact that the market was so volatile during the first half of March, and you’ve got my excuse for needing to take some time for myself to recharge recently, which is something you’ll also need to learn if you want to survive in this business.
So where did I go?
Miami, Baby!
When I got back earlier this week, I felt totally energized and excited to find new ideas as we get set for what is typically a better period of trading from a seasonal perspective.
With this week’s Bullseye Pick of the week reaching its first target on just the first day and continuing to rally beyond that target through the rest of the week, well, I am happy to say that my little mini-vacation paid dividends.
Here’s how I found this winner, which trades in a sector that still looks like it has plenty of room to run!
Shipping companies have mostly been strong of late
ZIM Integrated Shipping Service (ZIM) is one of the largest shipping stocks out there, which means it has acquired a nice portfolio of contracts over the years.
As you can see from this first chart, the company’s strong business of late has been reflected in the share price.
Tell me, how many charts in the market do you see that look like this lately?
You know, up and to the right, as opposed to down and to the right.
I have been wanting to bring this stock to your attention for the past couple of weeks, but I followed my own advice and waited for the March 9th earnings-related volatility to die down first.
By the way, the chart above is an hourly chart of ZIM, which means that every candle you see represents 1 hour of price action.
I like to use hourly charts because charts with shorter time frames, like 1 – 15-minute charts, are just too noisy in my opinion.
Therefore, I feel these 1-hour charts do a good job of smoothing out the price action.
My Bullseye Pick this week rallied through my most optimistic target in just 2 days
As is always the case with my Bullseye Picks, Monday was the alert day for this trade.
The stock started Monday’s session at $80.06, then quickly climbed to a high of $83.88 that day, just shy of my most optimistic target of $84.
But guess what?
By Tuesday’s close, $84 had become support. BOOM!
And by the end of the week, the stock had already rallied 17% at its best point, to a high of $91.23.
How did I find this idea?
When looking for stocks, I start with a heat map of sectors for the last week and month.
These scanners are available for free on many technical analysis sites like Stockcharts.com, where they are called “Market Carpets.”
To find this tool on Stockcharts.com, click “Charts & Tools” in the main menu bar…
Then scroll down until you see “Market Carpets.”
Then I sort from there and build a list.
The rest comes down to intuition and overall feeling for the market direction.
For ZIM, the direction was clear heading into this week, as the stock was already starting to climb above an “ascending triangle” at the start of the week.
Therefore, the combination of good fundamentals and technicals caught my interest.
Based on what I am seeing with Fibonacci Extension potential, ZIM has broken the 100% level from the prior pivots and ran towards the 261.8% Fib level near $89.
Another stop for the bulls if that is broken is the 361% Fib level near $107.43, but that is a very long way between levels, so be sure to respect stops along the way.
That said, with the market still volatile as it searches for a bottom, it is especially important that traders respect and honor all stops that you have in place.
To YOUR Success…
