Swing trading, a short to medium-term strategy involving the buying and selling of stocks over a period of days to weeks, is demonstrating its effectiveness in sector rotation strategy. Marathon Oil Corporation (MRO), a leading player in the energy sector, has seen a return of 28.73% thanks to this approach.
The recent momentum indicator for MRO, which is a key technical analysis tool that helps measure the speed at which the price of an asset, for instance, a stock, increases or decreases for a set of returns, turned positive. This event took place on July 7, 2023, signaling the advent of a potentially strong upward trend.
Momentum indicators serve as excellent predictive tools, allowing traders to detect potential stock price inflections. A positive shift in momentum implies the stock might be embarking on a new upward move, thus paving the way for traders to consider new investment strategies. These might involve buying the stock outright or exploring call options, which give the buyer the right, but not the obligation, to buy a stock at a specific price within a particular time frame.
Our analysis encompassed 96 similar instances where MRO's momentum indicator turned positive. The outcomes were fascinating, with 81 of these 96 cases resulting in the stock price moving higher in the following days. These figures represent an impressive success rate of approximately 84%.
The combination of technical analysis (TA) and fundamental analysis (FA) in this sector rotation strategy has evidently borne fruit for MRO. This Swing Trader strategy, rooted in TA&FA, has successfully capitalized on the positive momentum and potential upward trend of the MRO stocks, yielding an impressive 28.73% return.
This detailed analysis underscores the efficacy of Swing Trader's sector rotation strategy in recognizing and exploiting potential stock market trends. With the current momentum indicator turning positive, MRO presents a compelling case for further investment considerations. The strong possibility of the stock moving higher - standing at an 84% chance - adds a distinct layer of assurance for traders and investors considering new strategies to maximize returns.
The 50-day moving average for MRO moved above the 200-day moving average on September 06, 2023. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 1 day, which means it's wise to expect a price bounce in the near future.
MRO moved above its 50-day moving average on September 22, 2023 date and that indicates a change from a downward trend to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where MRO advanced for three days, in of 302 cases, the price rose further within the following month. The odds of a continued upward trend are .
MRO may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
The Aroon Indicator entered an Uptrend today. In of 242 cases where MRO Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Momentum Indicator moved below the 0 level on September 18, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on MRO as a result. In of 102 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are .
The Moving Average Convergence Divergence Histogram (MACD) for MRO turned negative on September 15, 2023. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 47 similar instances when the indicator turned negative. In of the 47 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where MRO declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward 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 Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding price growth. MRO’s price grows at a higher rate over the last 12 months as compared to 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 SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable 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 well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 77, placing this stock slightly better than average.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly overvalued 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 (1.409) is normal, around the industry mean (6.197). P/E Ratio (8.097) is within average values for comparable stocks, (16.491). Projected Growth (PEG Ratio) (1.684) is also within normal values, averaging (2.534). Dividend Yield (0.015) settles around the average of (0.125) among similar stocks. P/S Ratio (2.509) is also within normal values, averaging (120.438).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a company which explores, produces, transports and markets crude oil and natural gas
A.I.dvisor indicates that over the last year, MRO has been closely correlated with FANG. These tickers have moved in lockstep 90% of the time. This A.I.-generated data suggests there is a high statistical probability that if MRO jumps, then FANG could also see price increases.