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  • Swing Trade Idea (RCL) – April 16, 2024

    Apr 16, 2024 Swing Options Tips Comments Off on Swing Trade Idea (RCL) – April 16, 2024

    Our bearish trade for Tuesday, April 16th is Royal Caribbean Group (RCL). RCL is part of the Consumer Discretionary Sector, which traded at -3.16% over the last month, with RCL performing at 1.20% over the same period.

    Both RCL and its sector, the Consumer Discretionary Sector, have found resistance at the top of a trendline, from where it is pulling back. With RCL being overbought after a 10-month bullish streak, a pullback to below a previous lower-high of $117 is expected. We believe that support at around $100 could be most likely.

    As a close, if RCL were to trade above $135 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We will also consider cutting losses on this options trade if the value of the vertical spread moves below $2.92.

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