Swing trading strategies, particularly the Sector Rotation Strategy, encompassing Technical Analysis (TA) and Fundamental Analysis (FA), have generated impressive returns. One shining example is the case of ADNT, with an impressive return of 10.52%.
The methodology leverages oscillators and moving averages as critical indicators. In the case of ADNT, the Stochastic Oscillator has shown that the stock has lingered in the oversold territory for a duration of 2 days. Based on historical trends, such situations are commonly followed by an upward price bounce, offering an advantageous entry point for swing traders.
Confirming this upward trend, ADNT exhibited a positive shift as it advanced above its 50-day moving average on June 27, 2023. This critical milestone signifies a reversal from a downward trend to an upward one.
Further supporting this bullish sentiment, the 10-day moving average for ADNT bullishly crossed above the 50-day moving average on June 14, 2023. This trend reversal is a reliable buy signal, with a track record of the stock continuing to gain ground over the subsequent month in 16 out of 18 past instances. This places the odds of a continued upward trend at a robust 89%.
In the wake of a +3.46% 3-day advance, the stock price is anticipated to continue on its upward trajectory. Historical data indicates that, in 249 of 324 scenarios where ADNT rallied for three days, the stock price experienced further gains within the following month. This suggests that the probability of an ongoing upward trend sits at a comfortable 77%.
The recent performance of ADNT exemplifies the efficacy of swing trading strategies that leverage the Sector Rotation Strategy. With the right indicators and precise timing, investors can successfully ride the wave of momentum, reaping attractive returns along the way.
ADNT saw its Moving Average Convergence Divergence Histogram (MACD) turn negative on September 18, 2023. This is a bearish signal that suggests the stock could decline going forward. Tickeron's A.I.dvisor looked at 47 instances where the indicator turned negative. In of the 47 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
The Momentum Indicator moved below the 0 level on September 13, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on ADNT as a result. In of 92 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
ADNT moved below its 50-day moving average on September 05, 2023 date and that indicates a change from an upward trend to a downward trend.
The 10-day moving average for ADNT crossed bearishly below the 50-day moving average on August 21, 2023. This indicates that the trend has shifted lower and could be considered a sell signal. In of 18 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ADNT declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
ADNT broke above its upper Bollinger Band on September 01, 2023. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Stochastic Oscillator shows that the ticker has stayed in the oversold zone for 7 days. The price of this ticker is presumed to bounce back soon, since the longer the ticker stays in the oversold zone, the more promptly an upward trend is expected.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ADNT advanced for three days, in of 327 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. ADNT’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.598) is normal, around the industry mean (3.080). P/E Ratio (30.960) is within average values for comparable stocks, (39.422). Projected Growth (PEG Ratio) (0.071) is also within normal values, averaging (2.670). ADNT has a moderately low Dividend Yield (0.000) as compared to the industry average of (0.034). P/S Ratio (0.231) is also within normal values, averaging (5.448).
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating that the returns do not compensate for the risks. ADNT’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 88, placing this stock worse than average.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer of automotive seating systems
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A.I.dvisor indicates that over the last year, ADNT has been closely correlated with LEA. These tickers have moved in lockstep 80% of the time. This A.I.-generated data suggests there is a high statistical probability that if ADNT jumps, then LEA could also see price increases.