Swing Trade Idea (SPOT) 2-8-2021
Our bullish trade for Tuesday, February 9th is SPOT (Spotify Technology S.A). SPOT is part of the Communication Services Sector (XLC). XLC has experienced a 6.55% gain in the last month and its 1M trend turned bullish on Feb 1st.
SPOT has found a strong support level at $300 and continues bouncing higher from this area providing a good buying opportunity. With a technical score of 6 (out of 10), SPOT is a neutral stock that will likely continue higher.
As a stop loss, if SPOT were to trade below $300 for multiple days, this would invalidate our analysis and we would focus on cutting losses on the trade. We also recommend cutting losses on this options trade if the value of the vertical spread moves above $22.20.
