Analyzing the options chain and the chart patterns of SWBI Smith & Wesson Brands prior to the earnings report this week,
I would consider purchasing the 12.5usd strike price Puts with
an expiration date of 2024-9-20,
for a premium of approximately $1.35.
If these options prove to be profitable prior to the earnings release, I would sell at least half of them.
If you guess "inverse head and shoulders," you are correct! Clean breakout over long-term resistance line (marked in red). There is a strong likelihood that the share price will approximately double over the next 12 months. 2024 is an election year.
SWBI has a very bullish setup. Wave 2 may need one more leg down sub-$11.50, but it is not required. Appears to be a very high probability double over the next 12 months.
rejection should’ve occurred around 10 in this January rally but, instead, we had a break out, pull back to 10 and continuation right up to the trend line. We had a tenuous break out from the trend line, into the gap. reaction 11.27, 11.50, 11.64 and 12.50 areas to watch.
Political climate over the next 2 weeks may be a reason to consider bullish position on SBWI.
White is an overlapped timeline of price performance under similar past catalysts.
$SWBI Looking to break a support area. I will be looking to short this one on a break below the $13 area with a stop just above the blue support / resistance area. Next logical support area is down in the high $8.xx range which represents over a 30% decline. See notes on Chart. Lots of reasons this stock could tumble, fundamentals include slowing EPS and sales...
$SWBI trades in these large cycles up and down due to the big swings in sales. After big surges up in sales typically those sales contract which we are seeing now. I think SWBI will likely trade down into the $6-8 range.
With every mass shooting incident in the US calls for stricter gun control legislation grow. But paradoxically, mass shootings also lead to a surge in purchases of firearms, as Americans arm up for their own safety and over concerns that certain types of guns may become harder to purchase in the future.
Stockpiling guns and gun stocks
As consumers stockpile...
Looks, holding important levels on this consolidation and looks like accumulation. Theres other reasons i have but i dont wanna get banned from trading view. >:3.
Symetrical triangle. Previous trend support 15.85. Pop above 16.39 would breakout of syrmetricla triangle. Could target back to 17.90. If we lose 15.30 would mostlikely see a lower low. I’d test w buy at 15.85 if holds at least a 30 min close above that and stops 20 cents below
a move below 13.56 and we will see a lot more downside, if we can climb above trend resistance/19.48 then my upside targets are 23.35-32.03 !
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Today's trading idea is focusing on NASDAQ:SWBI
The stock is gapping down to $14.5 (pre-market) after worst than expected EPS and sales results.
The stock broke a major support level and now pre-market trading is below that level.
The idea is to go Short at the open when it will try to move higher and fails. (What we call a gap and Go)
SWBI
* Above 22.17 is my buy alert.
Possible Scenario: LONG
Evidence: Price Action
TP1: 23$
Very steady and bullish moves, it's time for break out
Call options, Strike 25$, 12/17/2021
*This is my idea and could be wrong 100%
This is a great spot for a long entry. $SWBI has broken out of it's channel and is looking to make a MASSIVE leg up!
Smith & Wesson Brands, Inc. is a holding company, which engages in the manufacture, design, and provision of firearms. Its portfolio includes handguns, long guns, handcuffs, suppressor, and other firearm-related products. The firm's brands are...
A huge impulse if forming. It literally shot off for this gun manufacturer, and we are not done yet in the general scheme of things - just that we are foreseeing a local correction.
This is a reflection using technical analysis + only and we do not consider valuation and macro factors at this stage.
The Fibonacci targets going down are highlighted in purple...
