.

Swing Trade Idea (EA) – September 9, 2021

Our bearish trade for Thursday, September 9th is EA (Electronic Arts Inc). EA is part of the Communication Services Sector (XLC). XLC has experienced a 3.1% gain in the last month and has reached the $86 resistance level.

EA has rejected the $148 major resistance level multiple times with price action indicating that a reversal lower is likely. With a technical score of 8 (out of 10), EA is a strong stock that will likely continue lower from these levels.

As a close, if EA were to trade above $148 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 below $1.73.