Swing Trade Idea (ADI) – May 04, 2023
Our bearish trade for Thursday, May 4th is Analog Devices, Inc. (ADI). ADI is part of the Technology Sector, that has performed at -1.67% over the last month with ADI underperforming relative to its sector at -7.08% over the same period.
ADI found resistance at the 55 Day EMA which coincides with a key level between $185 and $187. With recent rate hike announcements as well as declining strength on this asset, we believe that ADI will trade lower over the duration of this trade with the next support at $177 and then $170.
As a stop loss, if ADI were to trade above $187 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 $7.30.
