Profitable Swing Trader Strategy: Sector Rotation (TA&FA) Generates 11.73% for ERF
Swing Trader: Sector Rotation Strategy (TA&FA) Generates 11.73% for ERF
ERF, a stock that has been on an uptrend, has shown promising growth with a consecutive increase in value over three days from June 16, 2023. This consistent upward movement is generally interpreted as a bullish signal, indicating potential future growth for the stock. Investors are advised to closely monitor ERF as it may continue its positive trajectory.
Analyzing historical data, it has been observed that in 235 out of 298 instances where ERF experienced a three-day advance, the stock price further increased within the following month. This statistical trend suggests that there is a 79% likelihood of ERF continuing its upward trend.
The swing trading strategy, which combines both technical analysis (TA) and fundamental analysis (FA), has proven to be successful for ERF, generating a substantial return of 11.73%. By actively rotating sectors based on market trends and utilizing both technical and fundamental indicators, swing traders aim to capture short-term price movements and generate profits.
Sector rotation involves strategically allocating investments to different sectors based on their relative strength and performance. This approach allows traders to capitalize on the cyclical nature of the market and potentially outperform broader market indices. By identifying sectors that are likely to outperform in the current market conditions, swing traders can make informed investment decisions and achieve favorable returns.
ERF's positive performance, coupled with the sector rotation strategy's success, highlights the potential profitability of combining technical and fundamental analysis in swing trading. However, it is important to note that investment strategies always carry inherent risks, including the possibility of loss. Therefore, it is advisable for investors to conduct thorough research and consult with financial professionals before making any investment decisions.
ERF's recent uptrend, supported by historical data, suggests a favorable outlook for the stock. The swing trader's sector rotation strategy, incorporating both technical and fundamental analysis, has generated an impressive return of 11.73% for ERF. By closely monitoring ERF's performance and considering sector rotation opportunities, investors may be well-positioned to capitalize on potential future growth.
ERF sees MACD Histogram crosses below signal line
ERF 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 48 instances where the indicator turned negative. In of the 48 cases the stock moved lower in the days that followed. This puts the odds of a downward move at .
Technical Analysis (Indicators)
Bearish Trend Analysis
The 10-day RSI Indicator for ERF moved out of overbought territory on September 15, 2023. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 32 similar instances where the indicator moved out of overbought territory. In of the 32 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 69 cases where ERF's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
The Momentum Indicator moved below the 0 level on September 19, 2023. You may want to consider selling the stock, shorting the stock, or exploring put options on ERF as a result. In of 82 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent 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 ERF declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
Bullish Trend Analysis
The 50-day moving average for ERF moved above the 200-day moving average on September 01, 2023. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where ERF advanced for three days, in of 301 cases, the price rose further within the following month. The odds of a continued upward trend are .
ERF 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 262 cases where ERF Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very 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 Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. ERF’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 (3.086) is normal, around the industry mean (6.231). P/E Ratio (4.671) is within average values for comparable stocks, (16.603). Projected Growth (PEG Ratio) (0.000) is also within normal values, averaging (2.541). Dividend Yield (0.013) settles around the average of (0.124) among similar stocks. P/S Ratio (1.725) is also within normal values, averaging (120.481).
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 PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average 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.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
General Information
a company which explores for oil and natural gas
Industry OilGasProduction
ERF and
Correlation & Price change
A.I.dvisor indicates that over the last year, ERF has been closely correlated with CPG. These tickers have moved in lockstep 88% of the time. This A.I.-generated data suggests there is a high statistical probability that if ERF jumps, then CPG could also see price increases.