Stock Analysis: Best Swing Trading Stock for Next Week Under 100 – Banco BBVA Argentina (BBAR)
For traders looking for the best swing trading stock for next week under 100, Banco BBVA Argentina (BBAR) presents a potential short trade setup. With bearish signals on both higher and daily time frames, the stock is poised for a downward move.
1. Weekly Time Frame Analysis
On the weekly chart, Banco BBVA Argentina is in a bullish trend, consistently forming higher highs (HH) and higher lows (HL). However, the stock has now reached a strong resistance zone from 2018 at the $19-$27 range, where a potential reversal is anticipated.
Key observations:
- The stock price is testing this supply zone and showing signs of weakness.
- RSI Bearish Divergence: The RSI indicates bearish divergence, suggesting momentum is fading as the stock approaches overbought levels.
- Potential Downtrend: The first downside target is $8, with a second target at $5 in the coming weeks.
These factors make BBAR a strong candidate for the best swing trading stock for next week under 100 for traders planning short positions.
2. Daily Time Frame Analysis
On the daily chart, the bearish outlook is reinforced:
- Break Below $16: A break and close below $16 will confirm the start of a downtrend, aligning with the weekly bearish signals.
- Bearish RSI Divergence: Similar to the weekly chart, the daily RSI shows divergence, indicating waning bullish momentum.
Key Technical Levels
- Resistance Zone: $19-$27, acting as a strong supply zone where selling pressure is likely to dominate.
- Support Levels/Targets:
- Target 1: $8
- Target 2: $5
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Why BBAR is a Strong Swing Trade for Next Week
- Overbought Conditions: The stock is in the overbought zone on the RSI, signaling a reversal is likely.
- Bearish Divergence: RSI divergence on both weekly and daily time frames supports a bearish bias.
- Supply Zone Rejection: The $19-$27 range has acted as a strong resistance zone historically, reinforcing the case for a reversal.
Swing Trade Strategy
- Sell Entry Range: Look for short positions within the $19-$27 range if the stock shows signs of rejection.
- Confirmation Entry: A break and close below $16 can serve as confirmation for further downside.
- Stop Loss: Place a stop loss above $27 to manage risk.
- Targets:
- Target 1: $8
- Target 2: $5
Conclusion: Bearish Swing Trade Setup
Banco BBVA Argentina (BBAR) is a strong contender for the best swing trading stock for next week under 100, with multiple bearish indicators pointing to a potential downward move.
Traders should watch for rejection at the $19-$27 resistance zone or a break below $16 for confirmation of the bearish trend. With targets at $8 and $5, this setup offers a favorable risk-to-reward ratio for short positions.
FAQs
1. Why is Banco BBVA Argentina a good swing trading stock for next week?
BBAR is showing signs of reversal at a strong resistance zone with bearish divergence on the RSI, making it one of the best swing trading stock for next week under 100.
2. What is the key resistance zone for BBAR?
The $19-$27 range is the key resistance zone where the stock is expected to reverse.
3. What are the downside targets for BBAR?
The downside targets are $8 and $5, based on technical analysis.
4. What confirms the start of a downtrend for BBAR?
A break and close below $16 confirms the beginning of a bearish trend.
5. What is the recommended stop loss for this trade?
The stop loss should be placed above $27 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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