$Aris Water Solutions (ARIS.US)$ The risk level of investing...
The risk level of investing in ARIS is deemed moderate due to several factors, including its recent robust earnings and strategic initiatives that bolster investor confidence. The stock's volatility, marked by a daily statistical deviation from its average, poses a moderate risk given its industry and steady earnings performance. Its Price to Earnings (PE) ratio is relatively high, indicating possibly inflated valuations that could correct in adverse market conditions. Additionally, operating in a less prominent sector could magnify risks if broader market interest wanes. Despite these factors, the company's financial resilience and positive forward guidance offer a balance of risk and reward for a trader’s portfolio.
Key Attributes:
Recent earnings ( Yes), Breakout ( Yes), Catalyst ( Yes), Good company ( Yes), Valid float ( yes), Dollar break ( Yes), Near 52 week high ( No), 🥵 sector ( No)
Viability score : 7.8/10
Levels
Support Level: $17.00 - This level indicates a strong consolidation point, important for determining possible price floors post-dips.
Resistance Level: $19.00 - Having recently broken above this level, it signifies a point of momentum continuation, crucial for upward price action prediction.
Final Resistance: $22.03 - The 52-week high, acting as a top resistance barrier and potential target zone for breakout strategies.
Support Level: $17.00 - This level indicates a strong consolidation point, important for determining possible price floors post-dips.
Resistance Level: $19.00 - Having recently broken above this level, it signifies a point of momentum continuation, crucial for upward price action prediction.
Final Resistance: $22.03 - The 52-week high, acting as a top resistance barrier and potential target zone for breakout strategies.
Trading Strategy
Bias: Long
Allocation: 21.89%( of available to trade)
Position Size: 115 shares
Entry Price: $19.00
Exit Price: $28.153
Stop Loss: $16.06
Risk/Reward: 1:3.11
Allocation: 21.89%( of available to trade)
Position Size: 115 shares
Entry Price: $19.00
Exit Price: $28.153
Stop Loss: $16.06
Risk/Reward: 1:3.11
The assessment of Aris Water Solutions Inc. indicates it is a promising swing trade candidate, with a worksheet score above average ( 7.8/10) suggesting a well-positioned investment opportunity. Despite some sector vulnerabilities, strong fundamentals, including profitability and positive sentiment, align with substantial support levels and confirmed breakouts, propelling its upside potential. Traders should consider current volatility conditions, yet the calculated risk management approach underscores its viability. Focusing on strategic entry, exit, and stop loss criteria ensures capital protection while targeting feasible gains rooted in systematic analysis.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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