Swing Trade Idea (ITW) – January 24, 2023
Our bullish trade for Tuesday, January 24th is Illinois Tool Works Inc. (ITW). ITW is part of the Industrial Sector, which has performed at 2.91% over the last month, with ITW overperforming relative to its sector at 5.01% over the same period.
ITW broke above a key level of $220 with the 55 Day EMA as support. Both the 1M and 6M trends are bullish, and it has a Relative Strength of 9 (out of 10). As the strength is increasing, we believe that this uptrend will continue with the next major resistance at $235 and then at $245.
As a close, if ITW were to trade below $220 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We also will consider cutting losses on this options trade if the value of the vertical spread moves above $6.70.
