Swing Trade Idea (ADP) – June 30, 2022
Our bearish trade for Friday, July 1st is Automatic Data Processing Inc. (ADP). ADP is part of the Technology sector, which has performed at -9.49% over the last month.
ADP recently retraced from a lower high at $220, as strength declines. As ADP is in a downtrend channel, we expect this level to hold as resistance. This provides a good risk/reward bearish entry.
As a close, if ADP were to trade above $214 for multiple days, this would invalidate our analysis and will consider cutting losses on the trade. We also consider cutting losses on this options trade if the value of the vertical spread moves below $2.15.
