Here are the top 3 stocks we are watching for swing trades going into the week of 2/5/2024:

Disclaimer: Davis Capital research provides information and educational content related to stock trading for informational purposes only. The content is not intended as financial advice or a recommendation to buy or sell any securities. Davis Capital Research is not a registered investment advisor. The information provided on our platform, including articles, charts, and analyses, is not intended as financial advice. Users are encouraged to consult with a qualified financial professional before making any investment decisions. While we strive to provide accurate and up-to-date information, Davis Capital Research does not guarantee the accuracy, completeness, or reliability of any content on our platform. Users are responsible for verifying information before making any investment decisions. Trading stocks involves risks, and past performance is not indicative of future results. Users should be aware of the risks associated with trading and carefully consider their investment objectives before making any decisions. There are no guarantees of profit or protection against losses in stock trading. Users should be prepared to accept the risks and understand that investments may fluctuate in value. Davis Capital Research may provide links to third-party websites or content for informational purposes. We do not endorse or guarantee the accuracy of information on external sites and are not responsible for any content or services provided by third parties. Users are responsible for ensuring that their trading activities comply with applicable laws and regulations. Davis Capital Research is not liable for any legal consequences arising from non-compliance. The mention of specific securities or investment strategies on our platform does not constitute a recommendation or endorsement by Davis Capital Research. Users should conduct their own research before making investment decisions. Davis Capital Research reserves the right to modify or update these terms and disclaimers at any time. Users are encouraged to review this information regularly. By using Davis Capital Research’s platform, users acknowledge and agree to the terms outlined in this disclaimer.

1. $LOW. Lowes Companies, Inc.

Long. Stop loss: daily close below $212.84. Profit target #1: $233.83. Profit target #2: $251.61. Reasoning: Price rejected the $210 zone before launching through resistance. Price has now come back to the $210 level and confirmed support. Clear S/R flip. VPA wise we have seen the last four weeks have increasing volume as price compressed in the shadow of the massive buying candle. Price is compressing and volume is increasing. Now I am looking for expansion. This weeks candle completely engulfed the previous week and had increased volume. A+ volume and price action. Structure is bullish on both the weekly and daily. Weekly has a nice double bottom to risk off of. Risking $7 of underlying for $14-$28 reward.

2. $PLD. Prologis, Inc.

Long. Stop loss: daily close below $126.53. Profit target #1: $146.81. Profit target #2: $157.28. Reasoning: Clear S/R flip of the ~$125 level here. Price failed to have a weekly close above the zone from Mar 23′ – Sep 23′. Price finally broke above the zone at the end of 23′. When looking at breakouts, I HAVE to see high volume breaking through the zone. Otherwise, a low volume break is always a good bet for a failed break. $PLD had massive volume pushing price past the zone it had failed for nearly half a year. Now price is back to the level. As with other trades, I need to see a confirmation of the resistance turned support. What makes it a 10/10 S/R flip is when the volume supporting the flip is increased compared to the pullback to the level. Here we see exactly that. The volume sequence was massive volume break of resistance, low volume pullback, high volume lower wick holding support on earnings, and now a high volume buying green candle. Market structure wise, price is still bearish on the weekly. Price needs to take out the recent lower low to confirm bullish structure, which I believe is likely based off the daily bullish structure. Also liking how price is bouncing off the volume profile of both the daily and weekly charts. Risking $3 of underlying for potential $11-$21 reward.

3. $STZ Constellation Brands, Inc

Long. Stop loss: daily close below $244.47. Profit target #1: $259.79. Profit target #2: $268.06. Reasoning: I’m looking for S/R flips (support turned to resistance and vice versa), market structure, VPA, and the volume profile to support my thesis for any trade. Here, we see a clear S/R flip of the $245 level that price struggled to get through for nearly 2 months. Price has recently broken the $245 level and is coming back to retest it. When the retest occurs, VPA wise I am looking for increased volume supporting the buying compared to the selling that pushed price back to the $245 level. The selling volume on the weekly was pathetic for the spreads of the candles. Notice how low the sell volume is compared to the buying volume. Do we see increased volume confirming the support of the $245 level? Yes, we do. The weekly green candle clearly had more volume than the sell candles. This checks my VPA and S/R flip box. Market structure on the weekly is bullish, and I am looking for price to close above this weeks close to confirm the higher low on the weekly. On the daily, price closed above the recent lower high, which equates to a bullish structure break. The weekly volume profile clearly shows accumulation at the $245 level as the volume node is massive. Checks all my technical analysis boxes here, willing to risk $6 of underlying price for a potential $18 move.