Swing Trade Idea – August 21, 2020
Our bullish trade for Friday, August 21st is PayPal Holdings Inc (PYPL). PYPL is part of the Technology Sector (XLK). XLK has experienced a 6.52% gain in the last month and its 1M trend turned bullish on July 29th.
PYPL’s 1M trend turned bearish on July 27th and has recently pulled back to an area of support and rebounded with strong momentum. With a technical score of 10 (out of 10), PYPL is a very strong stock that will likely move higher.
As a stop loss, if PYPL were to trade below $184 for multiple days, this would invalidate our analysis and we would focus on cutting losses on the trade. We would also consider cutting losses on this options trade if the value of the vertical spread moves above $11.00.
