.

Swing Trade Idea (BCS) – July 26, 2024

Our bearish trade for Friday, July 26th is Barclays plc ADR (BCS). BCS is part of the Financial Sector, which is pulling back from the top of an uptrend channel and has performed at 3.54% over the last month. BCS overperformed relative to its sector over the same period at 11.45% and is also pulling back from the top of an uptrend channel.

BCS is pulling back from recent highs, in unison with the overall market. It also formed a double top with the previous all-time high of 2022. Apart from this, BCS is also extremely overbought as it has had a strong bullish rally since Feb 2024. As such, we are playing a bearish Debit Spread to capitalize on the expected downside.

As a close, if BCS were to trade above $12.00 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 below $0.22.