The bearish DailyPlay we chose for Tuesday Jan 30th is American Water Works (AWK). AWK is part of the Utilites Sector (XLU). Over the last month, XLU has experienced a 3.87% move lower and its 1m and 6m trend has turned bearish on 12/19 and recently bounced lower off its $51 resistance level.
American Water Work’s 1m and 6m trends turned bearish and neutral on 1/12 and recently bounced lower off its $85 resistance level. With a technical score of 4 (out of 10), AWK is a weak stock that is trending lower.
As a stop loss, if AWK was to trade above $85 for multiple days, this would invalidate our analysis and suggest getting out of the trade.
Learn to Trade Options w/ OptionsPlay’s new Educational Webinar Series!