Stock Analysis:-Best swing trade stocks under $50 – Dave & Busters Entertainment (PLAY).
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Best Swing Trade Stocks Under $50: Analyzing Dave & Busters Entertainment (PLAY)
Swing trading is a popular method for traders looking to capitalize on short- to medium-term stock price movements. One of the most attractive options for swing traders is to focus on stocks priced under $50. These stocks often provide significant potential upside with relatively lower capital requirements. Today, we’ll take a close look at Dave & Busters Entertainment (PLAY), a stock that closed at $32.70 on Tuesday, 24th September 2024, and explore its potential for swing trading.
Introduction to Swing Trading
Swing trading involves buying and holding a stock for a short period, typically from a few days to a few weeks, to profit from anticipated price moves. Traders typically use technical analysis to identify potential entry and exit points, making swing trading a strategic and calculated approach.
When looking for the Best swing trade stocks under $50, one must consider factors like trend direction, support and resistance levels, volume, and indicators such as RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence). Stocks priced below $50 offer affordable entry points, and Dave & Busters Entertainment (PLAY) fits perfectly into this category.
Company Overview: Dave & Busters Entertainment (PLAY)
Dave & Busters Entertainment is a well-known restaurant and entertainment company offering casual dining and arcade games. Over the years, the stock has seen fluctuations due to economic conditions, the pandemic, and consumer spending patterns. As of 24th September 2024, the stock closed at $32.70.
With the price being under $50, this makes Dave & Busters one of the Best swing trade stocks under $50 to consider for the short term.
Technical Analysis: Monthly Time Frame
Starting with the monthly time frame, Dave & Busters Entertainment (PLAY) stock is currently in a downtrend, continuously creating lower lows (LL) and lower highs (LH) on the chart. The stock recently tested a previous unmitigated supply zone back in April 2024. Since testing that supply zone, the stock has continued to decline according to the monthly chart.
As of September 2024, the stock is now approaching a strong demand zone around the $30 price level. This area represents a historical price point where the stock has bounced upwards in the past, making it a potentially attractive buy for swing traders.
Weekly Time Frame Analysis
When analyzing the weekly time frame, Dave & Busters stock continues to form lower lows and lower highs. This indicates a continuing bearish trend, but the oversold RSI value signals a potential upcoming reversal.
The weekly chart also shows two key unmitigated supply zones: one around $40 and another around $50. These supply zones represent areas where the price has previously experienced resistance. Swing traders could target these zones for potential profit. The RSI (Relative Strength Index) on the weekly chart also indicates oversold conditions, which suggests that the stock could be due for a rebound. Swing traders can capitalize on this information by entering near the support level and targeting the next resistance zones.
CHECKOUT HERE :- Next Good Swing Trade Stocks With Target & Stop Loss
Buy Swing Trade Idea
Based on the technical analysis of Dave & Busters Entertainment (PLAY), here’s a potential swing trade idea:
- Buy Entry Range: $32 – $30
- Stop Loss (SL): $27
- Target 1: $39
- Target 2: $45
Conclusion
In conclusion, Dave & Busters Entertainment (PLAY) presents a strong swing trading opportunity for those looking for the Best swing trade stocks under $50. With the stock currently sitting in a strong demand zone and showing oversold conditions on the RSI, there is potential for a bounce in the coming weeks. By employing a sound strategy and risk management techniques, traders can target the $39 and $45 levels for potential profits.
However, it’s important to note that if the stock breaks below the $27 level, this bullish setup would be invalid, and traders should exit the trade to minimize losses.
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Note: Always remember: risk no more than 1% per trade.” Keep trailing your stop loss to secure bigger profits.
Please note this is only an opinion and not financial advice.
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