Stock Analysis: Best Stocks to Invest in Right Now Long Term 2025 –Springworks Therapeutics Inc. (SWTX)
For investors seeking the best stocks to invest in right now long term 2025, Springworks Therapeutics Inc. (SWTX) presents a unique opportunity, with a bearish setup that may lead to a favorable long-term entry point. Below is a detailed technical analysis of the stock.
1. Weekly Time Frame Analysis
On the weekly chart, Springworks Therapeutics is currently in a downtrend, which offers valuable insights for long-term investors:
- In February 2024, the stock price tested a 2022 supply zone near $52 but was unable to sustain momentum, resuming its downward trend.
- The stock has formed a flag pattern, which could act as a trap for retail traders given the prevailing bearish sentiment.
- The $40-$47 range is identified as a strong supply zone, where selling pressure is expected to dominate.
These signals indicate the potential for a further decline, which aligns with the characteristics of the best stocks to invest in right now long term 2025 after the correction phase concludes.
2. Daily Time Frame Analysis
The daily chart provides additional confirmation of the bearish outlook:
- Bearish RSI Divergence: The RSI is showing divergence, signaling a loss of bullish momentum and the likelihood of a price reversal.
- Current Price Action: The stock is trading around $37 and is expected to face resistance in the $40-$47 range before continuing its decline.
Key Technical Levels
- Supply Zone/Resistance: $40-$47, acting as a strong area of selling pressure.
- Demand Zone/Downside Targets:
- Target 1: $30
- Target 2: $28
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Why SWTX Could Be a Long-Term Opportunity
- Clear Supply and Demand Zones: The $40-$47 resistance zone and the $30-$28 demand zone provide defined levels for potential trade setups.
- Potential for Rebound: After reaching the $30-$28 support zone, the stock could see renewed interest and bullish momentum, making it one of the best stocks to invest in right now long term 2025.
- Sector Potential: As a biotech company, Springworks Therapeutics has strong growth potential, supported by innovation and increasing demand in the healthcare sector.
Investment Strategy
- Short-Term Plan:
- Sell Entry Range: Consider short positions near the $40-$47 supply zone to capitalize on the expected downside.
- Stop Loss: Place a stop loss above $48 to manage risk.
- Targets:
- Target 1: $30
- Target 2: $28
- Long-Term Plan:
- Wait for the stock to stabilize around the $30-$28 demand zone before initiating long-term positions.
- Consider the completion of the bearish trend as an opportunity for long-term growth.
Conclusion: A Long-Term Opportunity After Correction
Springworks Therapeutics Inc. (SWTX) is one of the best stocks to invest in right now long term 2025, especially after completing its current bearish phase.
Investors should monitor the $30-$28 demand zone, as it aligns with the expected support level and offers a favorable entry point for long-term growth. With its strong sector potential and defined technical levels, SWTX is a promising choice for a balanced portfolio.
FAQs
1. Why is Springworks Therapeutics a good long-term investment?
Springworks Therapeutics operates in a high-growth biotech sector and is expected to rebound strongly from its $30-$28 demand zone, making it one of the best stocks to invest in right now long term 2025.
2. What is the key resistance zone for SWTX?
The $40-$47 range acts as a strong supply zone and resistance level for the stock.
3. What are the downside targets for SWTX?
The downside targets are $30 and $28, based on the stock’s bearish technical setup.
4. Should I invest in SWTX now or wait for a correction?
It is recommended to wait for a correction to the $30-$28 demand zone before initiating long-term positions.
5. What is the suggested stop loss for SWTX?
For short-term trades, a stop loss above $48 is recommended to manage risk.
A stop loss below $27 is recommended to manage risk effectively.
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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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