OptionsPlay DailyPlay

The bearish DailyPlay we chose for Thursday Dec 15th is Kellogg (K). K is part of the Consumer Staples Sector (XLP). Over the last month, XLP has experienced a 3.86% move higher and its 1m and 6m trends remain bullish and neutral. It has however reached overbought levels and just bounced lower off its $53 resistance level.

Kellogg’s 1m and 6m trends turned bearish on 11/28 and recently bounced lower off its $74 resistance level on high volume. With a technical score of 2 (out of 10), K looks positioned to continue this strong bearish trend lower.

View this Trade Idea on K

As a stop loss, if K was to trade above $74 for multiple days, this would invalidate our analysis and suggest getting out of the trade.