Swing Trade Idea (JD) 2-24-2021
Our bullish trade for Wednesday, February 23rd is JD.Com (JD). JD is part of the Discretionary Sector (XLY). XLY has experienced a 3.3% decline as price pulled back to an area of support.
JD has recently pulled back to an area of support at $94 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 6 (out of 10), JD is a neutral stock that will likely move higher.
As a stop loss, if JD were to trade below $94 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 $6.60.
