• Swing Trade Idea (EIX) – October 24, 2023

    Our bearish trade for Tuesday, October 24th is Edison International (EIX). EIX is part of the Utilities Sector, which has performed at -9.09% over the last month, with EIX underperforming at -9.15% over the same period.

    EIX is trading in unison with its sector as both are trending lower and following a downtrend channel. As it has a Relative Strength of 3 (out of 10) and both the 1M and 6M trends are bearish, we believe that EIX will not trade higher over the duration of this trade, with the next areas of support at around $58 and then $54.

    As a close, if EIX were to trade above $65 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 $3.64.

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