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Swing Trade Idea (AZN) – December 5, 2023

Our bearish trade for Tuesday, December 5th is AstraZeneca plc (AZN). AZN is part of the Health Care Sector, which has performed at 4.18% over the last month, with AZN underperforming relative to its sector at 1.31% over the same period.

AZN is in a downtrend and recently traded into the top of this downtrend channel. As it is underperforming relative to its sector, has a Relative Strength of 3 (out of 10) and is in a general bearish trend, we believe that AZN will continue this trajectory. The next support is at around $58.

As a close, if AZN were to trade above $67 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We will also consider cutting losses on this options trade if the value of the vertical spread moves above $3.46.