Swing Trade Idea (RF) – February 14, 2023
Our bearish trade for Tuesday, February 14th is Regions Financial Corporation (RF). RF is part of the Financials Sector, which has performed at 2.96% over the last month, with RF overperforming relative to its sector at 6.89% over the same period.
RF had a strong rally towards a long-term key area of $25, from where it is showing signs of weakness. As this is a counter-trend trade, we believe RF will retrace lower as it has reached a point of exhaustion, with the next support at around $22.50.
As a close, if RF were to trade above $24.50 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We also will consider cutting losses on this options trade if the value of the vertical spread moves above $0.80.