Collin Seow Remisier Blog

Systematic Trading (February 2023): Air Products and Chemicals and Rivian Automotive

Collin Seow
Publish date: Wed, 01 Feb 2023, 12:23 PM
Collin Seow
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Collin Seow (CFTe,CPM) is an experienced remisier who mentor his clients to help them to build a stock portfolio.

This article is for education purposes only, and not to be taken as advice to buy/sell. Please do your own due diligence before committing to any trade/investment.

Welcome to our 17th part of our series on Systematic Trading!

In this part, you'll discover two position trading opportunities in the US stock market.

Before you scroll further, you'll want to check out our stock pick in January on Datadog and The Travelers Companies.

Are you ready to check out Air Products and Chemicals and Rivian Automotive to discover if they are ready for a position trade?

 

Air Products and Chemicals (NYSE: APD)

Air Products and Chemicals truck

Source: airproducts.com/supply-modes/bulk

 

1. About the Company

Air Products and Chemicals is founded in 1940 during World War 2 with the idea of producing and selling industrial gasses.

It designed and sold oxygen generators to the air force during the war.

After the war, the company continued to innovate to stay relevant. The company started to produce massive amounts of liquid oxygen and nitrogen for NASA.

Over time, Air Products and Chemicals diversified into other gasses and chemicals that were necessary for industrial use.

With this business move, Air Products and Chemicals expanded to become a global company and enjoyed being the leader.

Today, the company is involved in LNG, turbomachinery, and even membrane solutions.

Knowing that this company is always on the look-out for opportunities and growth, how’s the market responding to its share price?

 

2. Position Trading (Daily)

Chart of Air Product and Chemicals

Air Products and Chemicals’ share price is resilient to the macroeconomic forces!

Its share price ranged sideways up till Nov 2022 before shooting to the sky.

While the share price of Air Products and Chemicals has been pulling back lately, this uptrend remains intact.

You can tell this from the greater number of blue candles (solid and outlined) and green arrows since Nov 2022.

Did you observe that there’s a green arrow under Air Products and Chemicals’ latest candle?

It’s a signal that a new uptrend is here.

Should you then buy its shares for a position trade now?

You’ll need to have a look at the Trend Impulse Factor indicator.

The color of the bar of the Trend Impulse Factor indicator is important. If it’s dark green in color, it tells you that there’s momentum gathering and that this bullish run could last for some time. This would increase your chance of profiting from the shares of Air Products and Chemicals.

Hooray, the bar of the Trend Impulse Factor indicator is in dark green!

The time to buy its shares for a position trade is here!

 

Rivian Automotive (NASDAQ: RIVN)

Rvian truck

Source: unsplash.com

 

1. About the Company

Rivian Automotive probably doesn’t need any introduction.

Started in 2009, Rivian Automotive is in the electric vehicles industry, producing electric pickup trucks and SUVs.

Did you know that the company has a collaboration with Amazon for deliveries?

Let’s have a look at its price chart to determine whether you should position trade its shares.

 

2. Position Trading (Daily)

Chart of Rivian Automotive

At a glance, do you see more red or blue candles (solid and outlined)?

Do you also see more red or green arrows?

Yes, red is the correct answer.

This tells you that the share price of Rivian Automotive is in a downtrend.

Thus, you should be looking for short-selling position trading opportunities.

On its latest candle, you can see a red arrow. This suggests that its share price is likely to resume dropping.

Next, have a look at the bar color of its Trend Impulse Factor indicator.

It’s light green in color, indicating that this bearish move is unlikely to carry on for long.

So, it’s clear that the shares of Rivian Automotive aren’t ready for a short-sale yet.

 

Conclusion

Rivian truck

Source: unsplash.com

Air Products and Chemicals’ shares are defying gravity, and don’t seem to be affected by the great uncertainty surrounding the world.

Paying attention to the indicators used, buying its shares for a position trade is ripe.

What about the shares of Rivian Automotive?

Is the time to trade its shares ripe too?

Unfortunately, it isn’t.

Rivian Automotive’s shares have been in a downtrend but the indicators that form the TradersGPS (TGPS) are suggesting that this bearish move could be short-lived.

Hence, it isn’t the time to short its shares.

There’s a very important concept I’d like to bring to your attention – the use of a stop loss.

Because the stock market doesn't behave according to our instructions and hopes, it's advisable to place a stop loss level to protect your trading capital, should an unexpected event occur.

Trading stocks without a proper system can be highly risky. This is why TGPS was created. The indicators will help you determine if a stock is ready for action to be taken. You won't have to feel in the dark and make wild guesses.

What are your thoughts?

Share your thoughts with us below!

 

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