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Swing Trade Idea (DFS) – December 9, 2021

Our bearish trade for Thursday, December 9th is Discover Financial Services (DFS). DFS is part of the Financial sector that has experienced a 2.9% decline in the last month. 

DFS recently broke below the $113 support level and has retraced back to this level to provide a good risk/reward bearish entry. Both 1M and 6M trends are bearish and with a Technical Score of 4 (out of 10), DFS is a weak stock that will likely move lower. 

As a close, if DFS were to trade above $113 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 $2.40.