Swing Trade Idea (NET) – February 23, 2023
Our bearish trade for Thursday, February 23rd is Cloudflare, Inc. (NET). NET is part of the Technology Sector, which has performed at 1.47% over the last month, with NET overperforming relative to its sector at 29.08% over the same period.
NET had a strong rally since the beginning of 2023 and has reached a point of exhaustion. As this is a counter trend trade, we expect NET to pullback from recent gains with the next support at around $55.
As a close, if NET were to trade above $68 for multiple days, this would invalidate our analysis and will consider cutting losses on the trade. We also consider cutting losses on this options trade if the value of the vertical spread moves above $4.72.
