.

Swing Trade Idea (EA)- June 23, 2022

Our bearish trade for Thursday, June 23th is Electronic Arts Inc. (EA). EA is part of the Communication Services sector, which has performed at -6.62% over the last month.

EA recently broke below a key support level of $130, and it respected this level on the retest. We, therefore, expect this level to hold as resistance and possibly retrace lower, which provides a good risk/reward bearish entry. 

As a close, if EA were to trade above $132 for multiple days, this would invalidate our analysis and we would consider cutting losses on the trade. We also consider cutting losses on this options trade if the value of the vertical spread moves below $1.70.