Trade of the Day: Estee Lauder (EL)

A break of short-term resistance should send EL much higher

By John Jagerson and Wade Hansen, Editors, SlingShot Trader

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Today, we’re opening a new bullish trade on Estee Lauder (EL).

Although the market has continued to correct, the underlying fundamentals remain strong. This leads us to strongly expect a bullish reversal in the short term.

We like a new entry on EL here, as the stock was able to avoid the selling and start a post-earnings bounce yesterday. The company has a defensible position in the consumer market, and a break of short-term resistance should send the price much higher.

Buying on a down-market day will likely make this a more volatile trade, but it improves the risk-reward ratio for the position.

‘Buy to open’ the EL March 140 Call (EL180316C00140000) for a maximum price of $2.20.

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InvestorPlace advisers John Jagerson and S. Wade Hansen, both Chartered Market Technician (CMT) designees, are co-founders of, as well as the co-editors of SlingShot Trader, a trading service designed to help you make options profits by trading the news. Get in on the next SlingShot Trader trade and get 1 free month today by clicking here.

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