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Swing Trade Idea (RF) – February 22, 2022

Our bearish trade for Tuesday, February 22nd is RF (Regions Financial Corporation). RF is part of the Financial Sector which has experienced a 2.22% weakening in performance over the last week, while RF underperformed the sector with -4.55%.

RF has retraced strongly from a double-top formation at an all-time-high level of $25.40, which provides a good risk/reward bearish entry. The 1M trend has recently turned to Mildly Bearish as the price started to decline.

As a close, if RF were to trade above $24.40 for multiple days, this would invalidate our analysis and focus is cutting losses on the trade. We consider cutting losses on this options trade if the value of the vertical spread moves below $0.40.