Swing Trade Idea (ADI) – February 28, 2023
Our bearish trade for Tuesday, February 28th is Analog Devices Inc. (ADI). ADI is part of the Technology Sector, which has performed at 0.51% over the last month, with ADI overperforming relative to its sector at 7.28% over the same period.
ADI had a strong rally since the beginning of 2023 and has reached a point of exhaustion, from where it is pulling back. As this is a counter trend trade, we expect ADI to continue this pullback from recent gains with the next support at around $175 and then $160.
As a close, if ADI were to trade above $188 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 $8.20.
