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Swing Trade Idea (SE) – December 2, 2021

Our bearish trade for Thursday, December 2nd is Sea Ltd (SE). SE is part of the Discretionary sector that has recently broken below a key support level at $201. 

SE recently broke below the $308 support turned resistance level and rejected this level on the retest which provides a good risk/reward bearish entry. Both 1M and 6M trends are bearish. 

As a close, if SE were to trade above $280 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 $8.05.