Swing Trade Idea (FTNT) – June 13, 2024
Our bullish trade for Thursday, June 13th is Fortinet Inc (FTNT). FTNT is part of the Technology Sector, which has performed at 8.97% over the last month, with FTNT performing at 1.66% over the same period.
FTNT found support at the bottom of an uptrend channel while it also formed a double bottom at around $59. The Technology Sector has also broken above resistance, indicating that further upside is most likely. As FTNT is currently underperforming relative to its sector, we expect to see further upside over the duration of this trade. We are playing a Credit Spread that provides a 38% gain per premium/width, which is excellent.
As a close, if FTNT were to trade above $58 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 $3.88 Debit.
