Swing Trade Idea – (SPOT) – October 22, 2020
Our bullish trade for Thursday, October 22nd is SPOT (Spotify Technology S.A). SPOT is part of the Communication Services Sector (XLC). XLC has experienced a 3.5% gain in the last month and its 1M and 6M trends turned bullish yesterday.
SPOT’s 1M trend turned bullish on October 7th and recently bounced off its 21 D EMA with strong momentum providing a good buying opportunity. With a technical score of 10 (out of 10), SPOT is a very strong stock that will likely continue higher.
As a stop loss, if SPOT were to trade below $257 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 $22.80.
