$Intuitive Machines (LUNR.US)$ Intuitive Machines Inc. (LUNR...
$Intuitive Machines (LUNR.US)$ Intuitive Machines Inc. (LUNR) presents a compelling swing trade opportunity with a high worksheet score of 8.9/10. Despite its significant recent gains and proximity to its 52-week high, several factors contribute to this positive outlook. The company operates in the Aerospace & Defense sector, which currently lacks momentum, as indicated by a hot sector score of 0. The recent news catalyst, reflecting a price target upgrade and strategic cooperation with Johns Hopkins University, adds positive sentiment, although a legal investigation poses some risks. Importantly, the company's earnings show negative profitability, but a favorable technical chart pattern with a clear support level around $9.75 backs a potential upward trend. Overall, the calculated risk-reward appears attractive for swing traders who are well-positioned to potentially capitalize on upcoming market movements.
Risk Level: 6 (Moderate)
The swing trade on LUNR carries a moderate risk level of 6 due to its volatile price history and uncertain sector performance. The company's negative profitability and high valuation metrics suggest potential instability, though these are counterbalanced by a solid technical support level and a relatively low float, which may contribute to large price swings. Furthermore, while the recent positive news supports potential upward movements, the legal scrutiny may introduce unexpected volatility. Traders should consider these mixed signals when deciding on position sizes and be prepared for swift changes in market conditions. The lack of sector support suggests that while lucrative, this trade may not align with risk-averse strategies.
The swing trade on LUNR carries a moderate risk level of 6 due to its volatile price history and uncertain sector performance. The company's negative profitability and high valuation metrics suggest potential instability, though these are counterbalanced by a solid technical support level and a relatively low float, which may contribute to large price swings. Furthermore, while the recent positive news supports potential upward movements, the legal scrutiny may introduce unexpected volatility. Traders should consider these mixed signals when deciding on position sizes and be prepared for swift changes in market conditions. The lack of sector support suggests that while lucrative, this trade may not align with risk-averse strategies.
Support and Resistance Levels
Support Level: $9.75 - This is a well-consolidated level evident from the recent price action and serves as a strong foundation for potential upward moves.
Resistance Level: $16.83 - Being the 52-week high, it represents a crucial resistance point where traders should monitor selling pressure.
Entry Point Consideration: Price action around $17 could signal further bullish momentum if recent highs are convincingly broken.
Support Level: $9.75 - This is a well-consolidated level evident from the recent price action and serves as a strong foundation for potential upward moves.
Resistance Level: $16.83 - Being the 52-week high, it represents a crucial resistance point where traders should monitor selling pressure.
Entry Point Consideration: Price action around $17 could signal further bullish momentum if recent highs are convincingly broken.
Short term trading Strategy
The trading strategy involves taking a long position with careful allocation and predetermined entry and exit points. Considering the stock's current momentum and technical setup, entering at $17.00 capitalizes on the break above recent resistance, aiming for a profitable exit at around $31.741. This exit takes advantage of anticipated gains driven by positive sentiment and potential catalyst realizations. A stop loss at $12.973 mitigates downside risks in case of adverse movements, ensuring that risk is managed effectively. The strategy involves committing 15.7% of your $10,000 equity into this trade, buying approximately 92 shares, which balances exposure and allows for a prudent 1:3.66 risk-reward ratio, maximizing potential profits against acceptable losses.
Equity Allocation: 15.7% of $10,000
Long Bias: Yes
Position Size: 92 shares
Entry Price: $17.00
Exit Price: $31.741
Stop Price: $12.973
Risk/Reward Ratio: 1:3.66
The trading strategy involves taking a long position with careful allocation and predetermined entry and exit points. Considering the stock's current momentum and technical setup, entering at $17.00 capitalizes on the break above recent resistance, aiming for a profitable exit at around $31.741. This exit takes advantage of anticipated gains driven by positive sentiment and potential catalyst realizations. A stop loss at $12.973 mitigates downside risks in case of adverse movements, ensuring that risk is managed effectively. The strategy involves committing 15.7% of your $10,000 equity into this trade, buying approximately 92 shares, which balances exposure and allows for a prudent 1:3.66 risk-reward ratio, maximizing potential profits against acceptable losses.
Equity Allocation: 15.7% of $10,000
Long Bias: Yes
Position Size: 92 shares
Entry Price: $17.00
Exit Price: $31.741
Stop Price: $12.973
Risk/Reward Ratio: 1:3.66
Conclusion
The analysis suggests that LUNR offers a promising swing trading opportunity given its high score and recent positive catalysts. Although the company's profitability metrics are lacking, the technical indicators provide a favorable risk-reward setup. The sector's current performance presents a concern; however, trader interest and favorable news may bolster stock performance. Traders should remain vigilant about monitoring their position closely, considering both technical signals and news developments that could impact the trade's outcome.
The analysis suggests that LUNR offers a promising swing trading opportunity given its high score and recent positive catalysts. Although the company's profitability metrics are lacking, the technical indicators provide a favorable risk-reward setup. The sector's current performance presents a concern; however, trader interest and favorable news may bolster stock performance. Traders should remain vigilant about monitoring their position closely, considering both technical signals and news developments that could impact the trade's outcome.
Final Verdict: Trade
Based on the analysis, LUNR appears to be a good candidate for swing trading owing to its strong technical setup and recent positive developments. The trade presents a calculated risk with potential for significant upside given the outlined strategy.
Based on the analysis, LUNR appears to be a good candidate for swing trading owing to its strong technical setup and recent positive developments. The trade presents a calculated risk with potential for significant upside given the outlined strategy.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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#unprofitable part time trader trying to make breakeven money don’t believe me for guaranteed profit in any trade idea.
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sundsvallson : at that trade size, is it worth bumping up to an even 100 shares and writing a call option?
Bigmoney Dreamer OP sundsvallson : I don’t know I never practice options in trading that’s just theoretical aspect not exact science
I always follow my own risk management strategy like cutting loss quickly, beting small , avoiding slippage , taking profit not too late only if I am disciplined etc
sundsvallson Bigmoney Dreamer OP : the magic of 100 lots is selling OTM calls.... pure profit and the booked income can offset initial stock purchase price. can pick shorter duration options for more volatile tickers, although if you're doing it right, the worst that happens is your shares get called out for a profit at a level slightly below market
Bigmoney Dreamer OP sundsvallson : I hear you whatever I am not interested in option strategy right nowadays I only like to do buy and sell