Swing Trade Idea – (EA) – September 24, 2020
Our bearish trade for Thursday, September 24th is EA (Electronic Arts Inc). EA is part of the Communication Services Sector (XLC). XLC has experienced a 6.2% loss in the last month and its 1M trend turned bearish on September 16th.
EA has recently pulled back to an area of resistance and moved lower with strong momentum yesterday. Its 1M trend turned bearish on September 1st. With a technical score of 7 (out of 10), EA is a strong stock that will likely continue lower.
As a stop loss, if EA were to trade above $132 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 $6.68.
