Celsius Holdings had potential in the long and short term for those willing to switch gears. We added CELH stock to SwingTrader three weeks after it joined Leaderboard's watchlist. SwingTrader and Leaderboard both aim to help traders make money. While Leaderboard operates on a scale of months and years, SwingTrader moves much quicker, generally holding stocks for only a few days or weeks. Naturally, different approaches have different rules.
Big Earnings Energy For CELH Stock
On May 10, the maker of calorie-burning fitness drinks joined Leaderboard's watchlist (1). It gapped up 10%, reporting +344% EPS for Q1 the day before. A gap up on earnings can be volatile, too much potential risk for SwingTrader, so we kept an eye on it. CELH stock managed to hold its ground, it never fell below the May 10 low and it found support at the 21-day line (2).
We added Celsius stock to SwingTrader June 1, as did Leaderboard (3). Using a trendline entry, we got in early at 129.36. This early entry gave us the extra room to take our first third the same day, 134.53 with 4% profit (4). Our next third came off the following day at 138.93 with nearly 8% profit (5).
We removed our final third June 7 at 139.56 (6). We wanted to give it more room, but CELH stock was down for the second day in a row, having given back 6% from the high. It was on track to close below the low of the prior two days and we didn't want to let this winner get away. At an average exit price of 137.67, we closed the trade with nearly a 6.5% profit.
The Long Haul
Upon our removal of CELH stock, we noted that you could continue holding, turning it into a position trade. This means if you have the stomach for greater risk, you could remain in the stock longer term. With a position trade, you may even add to your existing shares to take advantage of the possible gains.
By June 7, the 21-day line was catching up to our entry, you could elect to use it as a trailing stop. By June 22, the 50-day line was above our entry and CELH stock closed up 5% that day (7). Now you could try to hold it for an even bigger gain, although you would risk giving back more of your gains. The first bounce off the 50-day is often an ideal time to add shares.
CELH stock continues to trend higher and is just 2% below its all-time high.
