Swing Trade Idea (PCAR) – July 27, 2023
Our bearish trade for Thursday, July 27th is PACCAR Inc. (PCAR). PCAR is part of the Industrials Sector, which has performed at 0.78% over the last week, with PCAR underperforming at -4.94% over the same period.
PCAR reached a point of exhaustion and is pulling back from previous highs. As it moved below the 21 Day EMA and it continuing to lose strength, we believe that PCAR will continue this pullback over the duration of this trade, with the next support at around $75 and then $68.
As a close, if PCAR were to trade above $86 for multiple days, this would invalidate our analysis and 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 $3.64.
