Swing Trade Idea (LOW) – June 2, 2021
Our bearish trade for Wednesday, June 2nd is Lowe’s Companies Inc (LOW). LOW is part of the Discretionary Sector (XLY). XLY has experienced a 3.6% decline in the last month as rotation out of XLY continues.
LOW has recently broken below the $195 area of support and formed a new lower low and has retested this level. It’s 1M trend turned bearish on May 17th. With a technical score of 6 (out of 10), LOW is a neutral stock that will likely move lower.
As a stop loss, if LOW were to trade above $200 for multiple days, this would invalidate our analysis and we would focus on cutting losses on the trade. We also would consider cutting losses on this options trade if the value of the vertical spread moves above $6.42.
