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Swing Trade Idea (MO) – January 25, 2022

Our bearish trade for Tuesday, January 25th is Altria Group Inc. (MO). MO is part of the Staples sector that has performed at -1.71% over the last week, with MO performing at -1.69% over the same period.

MO recently tested the $49 support level as it traded lower from a double top formation, which provides a good risk/reward bearish entry. The 1M trend is expected to turn Neutral or Bearish soon as the strength of this asset is already declining.

As a close, if MO were to trade above $50 for multiple days, this would invalidate our analysis and 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 $2.36.