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  • Swing Trade Idea (CNI) – April 18, 2024

    Apr 18, 2024 Swing Options Tips Comments Off on Swing Trade Idea (CNI) – April 18, 2024

    Our bearish trade for Thursday, April 18th is Canadian National Railway Co. (CNI). CNI is part of the Industrial Sector, which traded at -0.63% over the last month, with CNI underperforming at -2.34% over the same period.

    CNI as well as its relevant sector is pulling back from the top of an uptrend channel, with CNI underperforming. CNI also respected a previous area of resistance at around $129 – $130 and is aiming lower in lockstep with the overall equity market. The next area of support is at around $118 and we take this opportunity to play a credit spread that generates a premium/width of over 40% which is an excellent risk/reward ratio.

    As a close, if CNI were to trade above $130 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 $8.30.

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