01/05/2022 Watchlist Chart

01/05/2022 Watchlist Chart

 

Watchlist for 01/05/2022

$UPS – The stock traded up 1.78% during market hours but was flat after hours. On the daily timeframe, UPS is working that inverse head and shoulder pattern with a big break out at the ATH level (219.16). On the 1 hour timeframe, we are seeing UPS forming a flag with above average volume and its looking to re-test ATH level at least . Keep an eye on the 219 level, if UPS can break above with volume, it can test 220 to 225 level resistance. We will consider puts if UPS fails to hold above the 216 (bottom of the flag) level, as it can pullback down to 214 (50MA on the 1hr) to 211 (14DMA) level support.

Contract Suggestion:

Above 219.16 level:220C 01/07 (1.2K Volume @0.83)
Below 216 level:215P 01/07 (560 Volume @1.04)

 

$SNOW – The stock fell 4.96% during market hours but was down 0.80% after hours. On the daily timeframe, SNOW broke down the wedge and closed just under that lower trendline of the wedge . Buyers stepped up when it bounced at the previous 300 break out level but failed to close green. SNOW would be put candidate due its relative weakness compared to the market and usually there’s a back test of the break down before a move lower to validate the break . Keep an eye on the 319 or back test 313 level, as it can test 327 to 332 (l00DMA) level resistance. Above 332 level, it can test 335 to 340 level resistance. We will consider puts if SNOW fails to hold above the 313 level, as it can pullback down to 307 to 300 (strong support) level. SNOW options usually have wide spreads so always limit order if you can.

Contract Suggestion:

Above 319 or B/T 313 level: 325C 01/07 (4.2K Volume @3.20) or 320C 01/07 (1.7K Volume @4.80)
Below 313 level:300P 01/07 (l.9K Volume @2.10)

 

$QCOM – The stock traded up 0.55% during market hours but was down 0.50% after hours. QCOM was one of the few stocks that managed to close green in a sea of red for tech during Tuesday’s trading sessions. On the daily timeframe, QCOM bounced off the lower trendline of the rising wedge and closed a long legged doji with above average volume . QCOM would be a candidate for calls if we see more money rotate into tech due to relative strength. Keep an eye on the 188 or back test 186 level, as it can test 191to 192.68 (AT H level). We will consider puts if QCOM fails to hold above the 191level,as it can pullback down to 182 to 180 level support.

Contract Suggestion:

Above 188 or B/T 186 level:190C 01/07 {16.9K Volume @l.19)
Below 186 level:185P 01/07 (814 Volume @ 1.52)

 

$MU – The stock traded up 0.62% during market hours but was down 0.72% after hours. Like QCOM, MU closed a strong bullish pinbar near ATH level on the daily timeframe. MU would be a great call candidate if we see money rotate into tech again. On the weekly timeframe, we see an inside week bar currently. This is setting up for a huge breakout towards the upside if it can clear 96.72 (ATH) with volume. Keep an eye on the 97 (rounding up from 96.72) or back test 96 level, as it can test 101to 108 level resistance. We will consider puts if MU fails to hold above 96 level, as it can pullback down to 93 to 90 level support .

Contract Suggestion:

Above 97 level: 98C 01/07 (2.4K Volume @0.84)
Below 96 level:95P 01/07 (2.2K Volume @0.89)

 

$AFRM – The stock fell 10.29% during market hours and was down 0.42% after hours. On the daily timeframe, AFRM got demolished during Tuesday’s trading sessions and was showing relative weakness compared to the overall market. AFRM is currently working that gap from the previous gap up with their partnership news back in September 2021. There’s still a small gap to be filled from 80 down to 69 if it moves lower. AFRM and financial stocks will be in play tomorrow during the FOMC December 2021minute release and would benefit from any positive news on rate hikes. Keep an eye on the 85 or back test 80 level, as it can test 90 (near 200DMA) to 97 level resistance (9DMA). Above 97 level, it can test 101to 106 level resistance . We will consider puts if AFRM fails to hold above the 85 level, as it can pull back down to 80 to 78 level resistance. There was significant flow into the OSCs heading into FOMC during Tuesday’s trading sessions at the dip.

Contract Suggestion:

Above 85 or B/T 80 level: 90C 01/07 (10.3K Volume @1.67) or OC 02/18 (18.6K Volume @4.25)
Below 85 level: SOP 01/07 (6. K Volume @1.38)

 

* *NEWS TO LOOK OUT FOR THIS W EEK * *

 

  • FOMC Minutes from December 2021on Wednesday (01/05) @ am PST/2pm EST
  • Unemployment claims Data on Thursday (01/06) @ 5:30am PST/8:30am EST
  • Non-farm payroll for December 2021on Friday (01/07) @ 5:30am PST/8:30am EST

 

 

 

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