01/27/2022 Watchlist Chart

01/27/2022 Watchlist Chart

 

Watchlist for O1/27/2022

$NVDA -The stock traded up 2.01% during market hours and Was up 1.44% after hours. LRCX is currently down big after hours and will likely affect the semiconductor sector such as J NTC, NVDA, AMD, etc. On the daily timeframe, NVDA has been riding that 200DMA (221.47) as a dynamic support but has been struggling to find enough volume to a continuation move.NVDA was showing relative strength during Wednesday trading sessions but quickly sold off after Powell started to speak which pulled the market lower. Treat it as a day trade until NVDA can close above 241 for an easier trade towards the upside. Keep an eye on the 230 or backtest 225 level, as it can test 233 to 236 level resistance. Above 236 level, it can test 241to 243 (9DMA) level resistance. We will consider puts if NVDA fails to hold above the 225 level, as it can drop down to 220 (near 200DMA) to 215 level support. Below 215 level, it can pull back down to 208 (Monday’s LOD) to 205 level support.

Contract Suggestion:

Above 230 or B/T 22S level:235C 01/28 (21.3K Volume @3.15)
Below 225 level:215P 01/28 (7.9K Volume @2.31) or 210P 01/28 (12.9K Volume @1.49)

$AMZN – The stock fell 0.80% during market hours but was up 0.24% after hours. A big thing to note on the daily timeframe, we see a death cross. A Death cross is where the SOSMA crossed below the 200SMA signaling a bearish trend despite AMZN already in a big downtrend from its recent highs. This is another bearish signal for the stock. We continue to see bearish price action in AMZN and so far has been finding a temporary support near the 2750 level as it has bounced here for the past two trading sessions . With NQ futures being down almost 2%, high chance of a gap down if futures price action holds into open. Keep an eye on the 2800 level or backtest 2750 level, as it can test 2827 to 2880 level resistance. Above 2880 level, it can test 2900 to 2920 level resistance. We will consider puts if AMZN fails to hold above the 2750 level, as it can pull back down to 2720 to 2700 level support. Below that can drop down to 2670 to 2630 level support. Below that can drop even further down to 2600 (another big psychological level). Wide spreads on both calls and puts for AMZN.

Contract Suggestion:

Above 2800 or B/T 2750 level: 2900C 01/28 (11.2K Volume @8.00)
Below 2750 level:2600P 01/28 (6. K Volume @8.15)

 

$AAPL – The stock fell 0.06% during market hours but was up 0.51% after hours. On the daily timeframe, AAPL continues to double top near that 183 level and has been desperately holding onto the 100DMA (158.08) as a dynamic support into earnings on Thursday (01/27) after market closes. They are pricing in a 6-9pt move in either direction. On the hr timeframe, we also see a bear flag forming not only for AAPL but most of the tech sector. Maybe there might be an ER run-up but with how the market has been reacting to past tech earnings, it’s hard to say what would happen. Keep an eye on the 160 or backtest 158 level, as it can test 163 to 165 level resistance. We will consider puts if AAPL fails to hold above the 158 level, as it can pull back down to 154 ( LOD on Monday) to 153 level support. Below that can pull back down to 150 to 147 (200DMA) level support.

Contract Suggestion:

Above 160 or B/T 158 level:162.5C 01/28 (33.5K Volume @2.54) or 165C 01/28 (65.4K Volume @1.61)
Below 158 level: 15SP 01/28 (30.5K Volume @2.320) or 150P 1/28 (32.2K Volume @1.16)

 

$CAT – The stock fell 0.01% during market hours but was flat after hours. On the daily timeframe, CAT was showing relative strength despite the market pullback towards the end of the day and closed a doji. CAT continues to find support at the 200DMA (211.05) with earnings coming up on Friday (01/28) after the market closes. If the market bounces, this relative strength can help CAT move higher. Keep an eye on the 215 or backtest 212 level, as it can test 217 to 220 level resistance. Above 220 level, it can test 223 to 227 level resistance. We will consider puts if CAT fails to hold above the 212 level, as it can pull back down to 210 to 206 level support.

Contract Suggestion:

Above 215 or B/T 212 level:220C 01/28 (728 Volume @ 1.92)
Below 212 level: 205P 01/28 (l.3K Volume @l.39)

 

$BABA – The stock fell 4.84% during market hours but was up 0.37% after hours. On the daily timeframe, BABA is quickly approaching a key support zone near the 110 level as it has bounced twice near this level. With how the market is this month, its likely will retest and possibly break with China’s news. Keep an eye on the 113 or backtest 110 level, as it can test 115 to 119 level resistance. We will consider puts if BABA fails to hold above the 110 level, as it can pull back down to 103 to 100 level support.

Contract Suggestion:

Above 113 or B/T 110 level: SC 01/28 (1.3K Volume @2.10)
Below 110 level: 110P 01/28 (2.9K Volume @1.50) or 108P 01/28 (3. K Volume @1.01)

 

 

**NEWS TO LOOKOUT FOR THIS WEEK**

 

  • Unemployment Claims Data on Thursday (01/27) @ 5:30 am PST/8:30 am EST

 

 

 

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