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Swing Trade Idea (V) – January 10, 2023

V formed a triple top at a key area of $220. This is a good indication that this level will hold as resistance and that V will retrace lower. As V is showing signs of exhaustion, this underpins our counter-trend thesis on this trade.

As a close, if V were to trade above $220 for multiple days, this would invalidate our analysis, and we will 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 $11.02.

V formed a triple top at a key area of $220. This is a good indication that this level will hold as resistance and that V will retrace lower. As V is showing signs of exhaustion, this underpins our counter-trend thesis on this trade.

As a stop loss, if V were to trade above $220 for multiple days, this would invalidate our analysis and suggest cutting losses on the trade. We also recommend cutting losses on this options trade if the value of the vertical spread moves above $11.02.