Swing Trade Idea (MDB) – June 20, 2023
Our bearish trade for Tuesday, June 20th is MongoDB Inc. (MDB). MDB is part of the Technology Sector, which has performed at 12.18% over the last month, with MDB overperforming relative to its sector at 32.48% over the same period.
MDB has overperformed its sector by almost 20% over the last month, and is currently in an over-bought condition as it found resistance at a multi-year key level of around $390. As this is a counter-trend trade, we expect MDB to pull back from this level after it gapped higher by almost $100 on June 1st, and failed to continue higher.
As a close, if MDB were to trade above $400 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 $9.68.