Swing Trade Idea (DIS) 2-23-2021
Our bullish trade for Tuesday, February 23rd is Walt Disney Co (DIS). DIS is part of the Healthcare Sector (XLC). XLC has experienced a 4.9% gain in the last month and its 1M and 6M trends turned bullish on Jan 19th.
DIS has recently pulled back to an area of support at $181 and bounced higher with strong momentum providing a good risk/reward for a long entry. Both 1M and 6M trends remain bullish. With a technical score of 8 (out of 10), DIS is a strong stock that will likely move higher.
As a stop loss, if DIS were to trade below $181 for multiple days, this would invalidate our analysis and we would focus on cutting losses on the trade. We also would consider cutting losses on this options trade if the value of the vertical spread moves above $10.50.
