Swing Trade Idea – (SPOT) – May 28, 2020
Our bullish trade for Thursday, May 28th is SPOT (Spotify Technology S.A).
SPOT is part of the Communication Services Sector (XLC). XLC has experienced a 10.69% gain in the last month and its 6M trend turned bullish on May 14th.
SPOT’s 1M trend turned bullish on April 14th and has pulled back after a strong bullish move providing a good buying opportunity. With a technical score of 10 (out of 10), SPOT is a very strong stock that will likely continue higher.
As a stop loss, if SPOT were to trade below $179 for multiple days, this would invalidate our analysis and we would consider cutting losses on the trade. We also consider cutting losses on this options trade if the value of the vertical spread moves above $9.00.