Swing Trade Idea – (WMT) – August. 27, 2020
Our bullish trade for Thursday, August 27th is Walmart Inc (WMT). WMT is part of the Consumer Staples Sector (XLP). XLP has experienced a 3.4% gain in the last month and its 1M and 6M trend turned bullish on July 2nd.
WMT’s 1M trend turned neutral on August 25th and has recently pulled back to an area of support and rebounded with strong momentum with more upside expected. With a technical score of 8 (out of 10), WMT is a strong stock that will likely move higher.
As a stop loss, if WMT were to trade below $128 for multiple days, this would invalidate our analysis and we would focus on cutting losses on the trade. We also consider cutting losses on this options trade if the value of the vertical spread moves above $3.60.
