Swing Trade Trade (NEE) – July 29, 2022
Our bearish trade for Friday, July 29th is NextEra Energy Inc. (NEE). NEE is part of the Utilities sector, which had a strong rally towards the top of a trendline within a trading channel, from where it is expected to trade lower.
NEE recently rallied to a key resistance level at $85 and is expected to trade lower as it is currently in an over-bought condition. This provides a good risk/reward bearish entry.
As a close, if NEE were to trade above $85 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 $2.64.
