Swing trading is effective in stocks that are currently way undervalued and overvalued compared to their peers. Usually in a short amount of time, the price values correct and go in-line with the sector. $CSTM (Constellium stock) was not moving upwards with the rise in aluminum stocks like $AA and $CENX. In addition news that the U.S. imposed new tariffs on steel imports helped out the entire metals group.
We initiated our long swing position in $CSTM on February 24th and was waiting patiently for the breakout above the $5.30 level. The $5.30 level was important because it was consolidating for around two weeks there. Once it broke out and we also saw 50k and 100k block prints above the $5.40 level we knew it would finally go as this signaled some real buying interest in $CSTM. The stock ripped nicely as expected and we sold into strength. Many of our members in the MookTrader chatroom banked large with us on this swing trade for some fast easy money.
Net profit: $13,784 in just a week!