Swing Trade Idea (PEG) – December 03, 2022
Our bearish trade for Tuesday, January 3rd is Public Service Enterprise Group Incorporated (PEG). PEG is part of the Utilities Sector, which has performed at -1.3% over the last month, with PEG overperforming relative to its sector at 1.19% over the same period.
PEG found resistance at a key level of $62, where it made several failed attempts to break higher. As this is a counter-trend trading alert we believe PEG will respect this level and continue lower, providing a good risk/reward bearish entry.
As a close, if PEG were to trade above $62 for multiple days, this would invalidate our analysis and we 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 $1.39.
