Swing Trade Idea – (FB) – August 06, 2020
Our bullish trade for Thursday, August 6th is FB (Facebook Inc). FB is part of the Communications Sector (XLC). XLC has experienced a 4.11% gain in the last month and its 1M trend turned neutral on July 29th.
FB’s 1M and 6M trend turned bullish on July 31st and July 30th respectively and has recently pulled back to an area of support to provide a good bullish opportunity. With a technical score of 9 (out of 10), FB is a very strong stock that will likely move higher.
As a stop loss, if FB were to trade below $224.00 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 $10.10.
