Swing Trade Idea – (DIS) – August 25, 2020
Our bullish trade for Tuesday, August 25th is Walt Disney Company (DIS). DIS is part of the Communication Services Sector (XLC). XLC has experienced a 6.7% gain in the last month and its 1M trend turned bullish on July 30th.
DIS’s 1M and 6M trends turned bullish on August 5th and has recently pulled back to an area of support and rebounded with strong momentum. With a technical score of 7 (out of 10), DIS is a strong stock that will likely move higher.
As a stop loss, if DIS were to trade below $124 for multiple days, this would invalidate our analysis and we would focus on cutting losses on the trade. We would also consider cutting losses on this options trade if the value of the vertical spread moves above $5.26.
