Swing Trade Idea (V) – March 09, 2023
Our bearish trade for Thursday, March 9th is Visa Inc. (V). V is part of the Technology Sector, which has performed at 0.12% over the last month, as it respected a downtrend line as resistance. V has underperformed relative to its sector at -3.16% over the same period.
V had healthy gains since October 2022 to form a double top at $230, from where it is trading lower. It is currently trading below the 21 Day EMA and aiming to break below a key support level of $220, from where we expect to see a continued pullback, with the next support at $208.
As a close, if V were to trade above $227 for multiple days, this would invalidate our analysis and would consider cutting losses on the trade. We also would consider cutting losses on this options trade if the value of the vertical spread moves above $7.40.
