Swing Trade Idea (WMT) – October 13, 2022
Our bearish trade for Thursday, October 13th is Walmart Inc. (WMT). WMT is part of the Consumer Staples Sector, which has performed at -5.77% over the last month, with WMT expected to follow suit.
WMT had a few failed attempts in breaking above a key level of $134 to $135, and as it is showing weakness, we expect it to continue lower, with the next support around $120. Also the 1M and 6M trends are bearish, which provides a good risk/reward bearish entry.
As a close, if WMT were to trade above $135 for multiple days, this would invalidate our analysis and we would consider cutting losses on the trade. We also want to consider cutting losses on this options trade if the value of the vertical spread moves above $7.06.
