Swing Trade Idea (F) – October 7, 2021
Our bullish trade for Thursday, October 7th is Ford Motor Co (F). F is part of the Discretionary Sector (XLY). XLY has experienced a 1.8% pullback in the last month as price finds support at the 100 D MA.
F recently broke above the 100 D MA and has since come back to retest this level providing a good risk/reward long opportunity. Both 1M and 6M trends are bullish and with a technical score of 9 (out of 10), F is a very strong stock that will likely move higher.
As a close, if F were to trade below $14 for multiple days, this would invalidate our analysis and we would focus on cutting losses on the trade. We also consider cutting losses on this options trade if the value of the vertical spread moves below $0.33.
