DUOL is not a buy for swing trading now; potential interest only if price falls to $90.

But, for example, let's take Duolingo. I do n't actually have any specific target levels for this stock. First thing, as soon as you ask me: Luton, what do you think of Duolingo?

Because these are questions we receive all the time. What do you think of stock "X" or "Y"? I would say: Okay, are you going to buy it here or sell it short here? The answer is neither this nor that.

Isn't that so ? In order to enter into a trade, especially in swing trading, I am talking about swing trading here, right? I have certain qualifications that these shares must meet. Isn't that so ?

For example, in this case, Duolingo , I see that it has fallen far from its highest levels. Where are its highest levels now? It's down about 73% from its peak a little over a year ago, right?

About 14 months ago. A decrease of approximately 76%. So, can I sell short? It's rather difficult, isn't it? I would be more inclined to buy. Isn't that so? Because my bias is that it is in a state of "oversold ", which makes a possible rebound more likely.

But if you look at the bottom from its lowest point in April to where it is now , what happened? It has bounced back by more than 70%, more than 68%, close to 70%. Which you could say is an exaggeration in the upward direction.

So, in this case, I will of course not short sell, even though it has risen by 70%. I will not sell short because I believe the overall trend favors a higher move simply because it is in a state of " oversold", right?

Regarding its position on the graph. But that doesn't mean I'm going to buy it here. The next thing I do is look for different levels of potential purchase. Where do I expect support for this stock, Duolingo?

In this case, is it correct? For swing trading, perhaps. Perhaps I should look at, wait, what if she comes back to this pivotal point, right? This is directly after earnings, the lowest point Duolingo has reached since its earnings slump just last month.

Isn't that so ? Back to level 112. Boom. A decrease of 24% to 25% at that level. You will find support. You are likely to find support at that low pivot point. Isn't that so?

In addition, what is the next level? For me, I'm looking at the next lowest level after that. The lowest point I reached all year . Isn't that so? This, well, would be a big reversal, a drop of about 40%.

But in my mind, well, this is my first level of support . This is my second level of support. Isn't that so? This is what I'm looking forward to for a potential swing trade.

Now, am I actually going to make this deal? Will I really do that? I have two other things to consider. Support alone is not enough. I need to look at the company as a whole. That's right, what's my opinion of this company?

Why does this company perform well or poorly, isn't that so? Why did the stock decline despite the positive profits, isn't that right ? Although it continued to rise. And what is, you know, how much do I actually like this company?

That's right, do I believe in this company? Isn't that so?

Well, first of all, Duolingo, as you know, is a company that sells software or owns an application. It is a software company that allows users to learn other languages. But with advances in artificial intelligence, how will Duolingo be threatened, right?

Or can they integrate the technology well? Is that true, or will we just get glasses that automatically translate everything for you? That's right, there are many things to consider.

So, for me, I'll probably step away , won't I? Just because it doesn't meet those key qualifications, but maybe if it drops to $90, that level , I might be interested.

Now, this is specifically for swing trading. When I started this video, I told you that my qualifications would be different for swing trading, long- term investments, and day trading.

Returning to Duolingo for day trading, this could be a great level for a bounce. I expect plenty of support during the day at least. What does that mean? This means that if the price drops to that level, I expect a rebound that day or from that level.

It doesn't mean it can't go any lower after that, but just an initial jump, "boom," in and out. This is what I think might happen there in Duolingo.

However, as we shift our mindset from long-term swing trading setups, I will then look for other potential day trading levels . I can be a little bolder . There is a level here, a good gap filling around $130 that should have dropped to that level, that should also provide support, at least during the day.

Now, is it as strong as this pivotal bottom after the earnings announcement and the lowest price it reached after the earnings? Absolutely not. Is it as strong as the lowest point it has reached all year?

Absolutely not. But is it still strong enough to provide a support zone for Duolingo? Absolutely, it is.

So, I've now shown you what I would look for in swing trading, what I would look for in day trading, and finally, if I were looking for a long-term investment, this company wouldn't even be on my radar .

First and foremost , as you know, I have a few criteria I look for when I'm looking to invest for the long term. That's right, first of all, it needs to be a strong and trustworthy name.

Duolingo is okay, isn't it? It's good, but it's not the absolute best like Nike, right? Or McDonald's. Whether you eat at McDonald's or like the company or not, McDonald's will probably still be around 10 years from now. As for Duolingo, I'm not so sure.

Another thing I'm looking for is dividend payouts , isn't that right? Stocks that pay dividends, as you know, can give us a return during the buy and hold period. Buying a stock, holding it, and then selling it to make money is one thing, but if its value continues to rise steadily while you hold it, and the stock continues to pay you dividends based on the number of shares you own, then that will certainly make me want to buy it .

Finally, I'm not really looking for something that's too volatile. Returning to the Duolingo chart, we see that it is experiencing enormous fluctuations. Within a few months, from April to August, the stock rose by 90%, and in just two days, it fell by 18%.

It's very unpredictable for me. Isn't that so ? Because I want to be in a position where I don't have to constantly monitor my long-term investments. I can let my money work for me instead of constantly checking and worrying: "Oh my god, it's up 20%.

Oh my god, it's down 20%. Should I add to my balance sheet?" correct? I'm not really looking for that when I'm looking to invest for the long term.