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Swing Trade Idea (AWK) – March 29, 2022

Our bullish trade for Tuesday, March 29th is American Water Works Company, Inc. (AWK). AWK is part of the Utilities sector and has performed at 5.72% over the last month.

AWK recently broke above a key resistance turned support level at $155 and had a strong move higher after retesting this level. This provides a good risk/reward neutral or bearish entry. The 1M trend is bullish and the 6M trend is Neutral, but expected to turn bullish soon. 

As a close, if AWK were to trade below $150 for multiple days, this would invalidate our analysis and will focus on cutting losses on the trade. We will consider cutting losses on this options trade if the value of the vertical spread moves above $5.90.