Swing Trade Idea (SE) – October 6, 2021
Our bullish trade for Wednesday, October 6th is Sea Limited (SE). SE is part of the Communications Sector (XLC). XLC has pulled back to support at $79 and rebounded yesterday indicating a possible reversal higher.
SE broke to new all-time highs in August and has since pulled back from this level to provide a good risk/reward bullish entry near $310 support. 6M trends are bullish and with a technical score of 9 (out of 10), SE is a very strong stock that will likely move higher.
As a close, if SE were to trade below $310 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 $9.95.
