Swing Trade Idea (TMO) – May 7, 2024
Our bearish trade for Tuesday, March 7th is Thermo Fisher Scientific Inc. (TMO). TMO is part of the Health Care Sector, which has performed at -1.27% over the last month, with TMO performing at -1.02% over the same period.
TMO traded into an area of resistance at around $600, from where it is pulling back. This was followed by a failed break to around $580 from where it is once again pulling back. With the Health Care sector also trading lower than previous highs, and TMO still being considered overbought, we expect to see further downside with $530 as support.
As a close, if TMO were to trade above $580 for multiple days, this would invalidate our analysis and we will consider cutting losses on the trade. We will also consider cutting losses on this options trade if the value of the vertical spread moves above $14.50 Debit.
