01/26/2022 Watchlist Chart
Watchlist for 01/26/2022
$HD – The stock fell 1.33% during market hours and was down 0.22% after hours. On the daily timeframe, HD has been trading within an inside day pattern after closing a bullish engulfing candle on Monday. It managed to bounce strongly off the 200DMA (344.37} but failed to find some continuation on the second day. Lots of stocks closed within an inside day pattern heading into FOMC. The weekly timeframe is holding between the golden pocket zone of the Fibonacci retracement, so around these levels are great bounce area if market doesn’t sell off again. Keep an eye on the 362 level, if HD can break above with volume, it can test 366 (9DMA) to 368 level resistance. Above 368 can test 270 ( OODMA) to 375 level resistance. We will consider puts if HD fails to hold above the 355 level, as it can drop down to 345 (near 200DMA) to 342 level support.
Contract Suggestion:
Above 362 level: 3 70C 01/28 (1.6K Volume @1.50)
Below 355 level: 350P 01/ 28 (467 Volume @3.00) or 340P 01/28 (1.4K Volume @1.5 6)
$UPST – The stock traded up 3.11% during market hours and was up 0.84% after hours. On the hr timeframe, UPST was showing relative strength for the majority of the day as it bounced off strong from lows and managed to fill the gap from the morning gap down. We were able to see some continuation strength from beaten-down growth stocks for the second day as well. On the weekly timeframe, UPST backtested the near the 100 level ( psychological level) but failed to close above so far. Depending on how the market reacts to FOMC, we may see a nice rally after these past few weeks of sell-off with relative strength in growth stocks. Keep an eye on the 95 levels or backtest 87 levels, as it can test 100 to 105 level resistance. Above 105 level, it can test 108 to 114 level resistance. We will consider puts if UPST fails to hold above the 87 levels, as it can pull back down to 84 to 75 level support.
Contract Suggestion:
Above 95 or B/T 87 level: OOC 01/28 (7.8K Volume @ 2.70)
Below 87 level: 85P 01/28 (1.6K Volume @1.88)
$FB – The stock fell 2.77% during market hours and was up 0.13% after hours. On the daily timeframe, we have an inside day pattern heading into FOMC with earnings report on Wednesday (02/02} after market closes. The weekly timeframe is also a doji as well, so there’s a lot of indecision on which direction FB wants to go. Treat this as a day trade until FB can close above 320 for confirmation of upside. Keep an eye on the 300 or backtest 296 level, as it can test 303 to 306 level resistance. Above 306 level,it can test 308 to 310 level resistance. Above 310 level, it can test 314 to 316 level resistance. We will consider puts if FB fails to hold above the 300 level, as it can pull back down to 296 to 292 level support. Below that can test 289 ( LOD on Monday) to 287 level support.
Contract Suggestion:
Above 300 or B/T 296 level: 310C 01/28 (3.7K Volume @2.87)
Below 296 level: 290P 01/ 28 (6.7K Volume @3.75)
$TSLA – The stock fell 1.25% during market hours but was up 0.3 7% after hours. TSLA reports their earnings on Wednesday (01/26) after market closes and the market makers are pricing in 80-l00pt move in either direction. The IV is insanely high on options contract, so if TSLA doesn’t move crazy in either direction, there’s a high chance for IV crush, so please make sure to play what you are only willing to lose. On the daily timeframe, TSLA bounce at the bottom of the overall flag near the 850 level on Monday but failed to close higher for a continuation on Tuesday heading into FOMC. The easier trade would be above 1050. Keep an eye on the 930 level or backtest 915 level, as it can test 945 to 961 (l00DMA) level resistance. Above 961level, it can test 978 (previous strong support now turn resistance} to 988 level resistance. Above that can test 1000 to 1021 level resistance. We will consider puts if TSLA fails to hold above the 915 level, as it can drop down to 900 to 886 level support. Below that can fall further down to 880 to 860 level support. Below that would be the bottom of the flag test again at 850 to 835 level support.
Contract suggestion:
Above 930 or B/T 915 level: 1020C 01/28 (2.6K Volume @13.75) or 1050C 01/28 (24K Volume @9.35)
Below 915 level: 850P 01/28 (17.7K Volume @18.50} or 800P 01/28 (28.8K Volume @8.40)
**NEWS TO LOOK OUT FOR THIS WEEK**
- FOMC Statement on Wednesday (01/26) at 11 am PST/2pmEST with J Powell speaking 30min after
- Unemployment Claims Data on Thursday (01/27) @ 5:30 am PST/8:30 am EST