Swing Trade Idea (MMC) – September 16, 2022
Our bearish trade for Friday, September 16th is Marsh & McLennan Companies, Inc. (MMC). MMC is part of the Financial Sector, which has performed at -6.84% over the last month, with MMC underperforming relative to its sector at -9.28% over the same period.
MMC made a lower high as it is trending lower, from where it broke below support at $157. As strength continues to decline, we expect some further downside with the next support level at $150. This provides a good risk/reward bearish entry.
As a close, if MMC were to trade above $160 for multiple days, this would invalidate our analysis and we would consider cutting losses on the trade. We also will consider cutting losses on this options trade if the value of the vertical spread moves below $2.66.
