.

Swing Trade Idea (IWD) – August 01, 2023

Our bearish trade for Tuesday, August 1st is iShares Russell 1000 Value ETF (IWD). The IWD seeks to track the investment results of an index composed of large- and mid-capitalization U.S. equities that exhibit value characteristics.

IWD has been in a strong bullish trend since May 2023 and recently traded into a key resistance area of $162, from where it is showing signs of a pullback. Recent earnings is also contributing to a pullback from this level and the next support is at $155 and then $148.

As a close, if IWD were to trade above $163 for multiple days, this would invalidate our analysis and would 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 $3.74.