Swing Trade Idea (ATVI) – May 28, 2021
Our bearish trade for Friday, May 28th is Activision Blizzard Inc (ATVI). ATVI is part of the Communication Services Sector (XLC). XLC has experienced a 2.66% gain in the last month and has rallied to an area of resistance.
ATVI has rejected the $98 resistance level and is currently in overbought territory. With a technical score of 8 (out of 10), ATVI is a strong stock that will likely move lower.
As a stop loss, if ATVI were to trade above $98 for multiple days, this would invalidate our analysis and we would focus on cutting losses on the trade. We also would consider cutting losses on this options trade if the value of the vertical spread moves below $1.68.
