Swing Trade Idea (ADI) – June 10, 2022
Our bearish trade for Friday, June 10th is Analog Devices Inc. (ADI). ADI is part of the Technology sector, that has performed at -4.94% over the last week, with ADI following suit at -.4.51% for the same period.
ADI recently found resistance at $167, from where it retraced to below a key level of $162, as strength is decreasing. This provides a good risk/reward bearish entry. Both 1M and 6M trends are currently neutral.
As a close, if ADI were to trade above $162 for multiple days, this would invalidate our analysis and focus cutting losses on the trade. We also consider cutting losses on this options trade if the value of the vertical spread moves above $12.70.
