Swing Trade Idea – (MS) – August 07, 2020
Our bearish trade for Friday, August 7th is Morgan Stanley (MS). MS is part of the Financial Sector (XLF). XLF has experienced a 4.96% gain in the last month and its 1M trend turned bullish on July 19th.
MS’s 1M trend turned neutral on August 3rd. MS broke below its 20 D MA and has recently pulled back to this area to provide a good short opportunity. With a technical score of 5 (out of 10), MS is a neutral stock that will likely move lower.
As a stop loss, if MS were to trade above $51.50 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 $3.56.
