Swing Trade Idea (CLX) – October 20, 2022
Our bearish trade for Thursday, October 20th is The Clorox Company (CLX). CLX is part of the Consumer Staples Sector, which has performed at -2.99% over the last month, with LUV underperforming relative to its sector at -3.14% over the same period.
CLX had a short rally into a key resistance level at $135, which we expect CLX to respect and trade lower. Also the 1M trend is neutral and the 6M trend is bearish, while it is losing strength, providing a good risk/reward bearish entry.
As a close, if CLX were to trade above $135 for multiple days, this would invalidate our analysis and we would consider cutting losses on the trade. We also will consider cutting losses on this options trade if the value of the vertical spread moves above $8.16.
