Swing Trade Idea (WCC) – June 4, 2024
Our bearish trade for Tuesday, June 4th is Wesco International, Inc. (WCC). WCC is part of the Consumer Discretionary Sector, which has performed at -0.47% over the last month, with WCC performing at 7.32% over the same period.
WCC has been overperforming relative to its sector over the last month despite it pulling back over the last week. This pullback is as a result of resistance at $185, which held over the last 6 months. As WCC has been oscillating between support around $150 and resistance at $185, we believe that a continued pullback can be expected over the duration of this trade, towards the $150 level.
As a close, if WCC were to trade above $185 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 $6.50 Debit.
