Swing Trade Idea (ROK) – September 05, 2023
Our bullish trade idea today is Rockwell Automation (ROK). ROK has experienced a strong decline in July and most of August, however, we are starting to see a reversal higher with price now breaking above the key $310 level as well as both the 21 and 55 D EMA’s. Price has successfully retested the $310 level which provides a good risk/reward bullish opportunity. Our upside target is $330 and a break and close below the $310 level would indicate that the trade should be closed to cut losses.
Equities came back to life last week as we saw bullish price action across the board early on in the week heading into some important jobs data. Unemployment came in higher than expected which in today’s macro climate is a positive for equities as it gives the Fed more freedom to keep rates as they are. We expect to see a continuation of the bullish trend for the next few weeks to come however contagion fears regarding China remain but seem to have been limited in recent days.