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Swing Trade Idea (TXN) – August 05, 2022

Our bearish trade for Friday, August 5th is Texas Instruments Incorporated (TXN). TXN is part of the Technology Sector, which is showing signs of slow-down as it rallied into an area of resistance. 

TXN recently rallied into an area of resistance at $182 following Earnings, and it is entering an over-bought condition. This provides a good risk/reward bearish entry. 

As a close, if TXN were to trade above $188 for multiple days, this would invalidate our analysis and consider cutting losses on the trade. We also would consider cutting losses on this options trade if the value of the vertical spread moves above $8.74.