Stock Analysis:-Best Swing trading stocks for next week – Viper Energy(VNOM).
Here’s a detailed analysis of Viper Energy (VNOM) for a potential swing trade:-
Starting with the weekly time frame, Viper Energy stock is currently trending bullish, continuously forming higher highs (hh) and higher lows (hl) on the chart.
This indicates a steady uptrend. The stock price has been moving within an ascending channel pattern, which suggests a gradual rise over time.
Recent Breakout
Last month, VNOM broke above its all-time swing high of $44, signifying strong momentum to the upside. However, the momentum might be weakening.
Bearish Divergence Warning
If we observe the RSI (Relative Strength Index) on the weekly chart, it is indicating a bearish divergence.
This means that while the stock price is making higher highs, the RSI is not, suggesting that the bullish momentum might be losing strength.
Trend Shift
On both the daily and H4 (4-hour) time frames, there is evidence of a trend shift. The charts show the stock is moving from a bullish to a bearish trend, meaning a short-term pullback or correction may be on the horizon.
Expected Retracement
Given the current setup, we can expect a retracement from the current price level of $44.79 down towards the $40 price level.
Sell Swing Trade Idea:-
Sell Entry Range: $44.80 – $46.30
Stop Loss (SL): $48.80
Target: $40.50
Invalidation of Setup
If the price breaks and closes above $49, this bearish setup would become invalid.
Today’s Best Swing trading stocks for next week – Viper Energy(VNOM).
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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