03/04/2022 Watchlist Chart

03/04/2022 Watchlist Chart

 

Watchlist for Friday, 03/04/2022

 

$MSFT – The stock fell 1.42% during market hours and was down 1.24% after hours. On the daily timeframe, MSFT has been trading within a falling wedge but hit a big resistance which is the daily top trend-line of the falling wedge. This is the 4th rejection from this trend-line and with futures down close to 1%, we can see a gap down into market open if futures remain red. We also see a bullish RSI divergence a week back but with the market volatility, it’s harder to find any upside without the big volume on this pattern break. Keep an eye on the 294 level, if MSFT fails to hold above this level, it can test 290 to 286 level support. Below that and drop down to 281 to 279 level support. We will consider calls if MSFT can break above the 296 level, as it can test 300 (big resistance) to 303 level.

Contract Suggestion:
Above 296 level: 297.5C 03/04 (4.1K Volume @1.41) or 300C 03/04 (15.2K Volume @0.52)
Below 294 level: 292.5P 03/04 (5.6K Volume @1.19)

 

 

$SNOW – The stock fell 15.37% during market hours and was down 2.24% after hours. On the daily timeframe, SNOW gapped down big after a poor earnings report despite closing a Doji. Buyers stepped in to buy the dip despite the weakening market. There’s a gap to be filled from 234 to 250 level if we see buyers step in again. On the weekly timeframe, SNOW broke down the wedge I’m leaning more bearish. Keep in mind that when there’s a breakdown or break out, there’s always a re-test of that before moving in the direction, so we may see a SNOW gap fill before a move lower. Keep an eye on the 230 or backtest 222 level, as it can test 235 to 243 level resistance. Above 243 level, it can test 250 (gap filled) to 253 level resistance. We will consider puts if SNOW fails to hold above the 222 level, as it can pull back down to 215 to 213 level support. Below that can drop down to 209 to 206 level support.

Contract Suggestion:
Above 230 or B/T 222 level: 225C 03/04 (2.6K Volume @4.90) or 235C 03/04 (2.8K Volume @1.45)
Below 222 level: 215P 03/04 (5.7K Volume @2.00)

 

 

$SQ – The stock fell 8.08% during market hours and was down 3.02% after hours. Based on how futures are down “bigly”, there’s a high chance SQ can start to fill the gap from their earnings gap up. On the daily timeframe, it closed a strong big-bodied bearish candle after some rejection at the 50DMA (127.69). Growth stocks have been hammered these past few months and SQ is still in an overall downtrend. We will consider SQ for puts due to this gap fill if the market pulls back more. Keep an eye on the 111 level (previous resistance turned strong support), as it can test 104 to 100 (strong support). Under 100, it can drop down to 95 to 87 level support. We would consider calls if SQ can break above 117 level, as it can test 122 to 127 (50DMA) level resistance.

Contract Suggestion:
Above 117 level: 118C 03/04 (1.6K Volume @1.04)
Below 111 level: 110P 03/04 (4.6K Volume @0.96)

 

 

$CRWD – The stock fell 5.32% during market hours and was down 0.53% after hours. On the daily timeframe, CRWD broke above the wedge but is looking to re-test that break out. This would be a great re-entry for calls at the backtest of the 50DMA (184.21) near the wedge break-out level. CRWD has been influenced by the ongoing news with cyber warfare, so be wary of playing this as it’s highly sensitive to news. Keep an eye on the 187 level, if CRWD fails to hold above this level, it would cause a fake break out and test 184 (50DMA) to 181 level support. Below that can drop down to 173 to 166 level support. We will consider calls if CRWD can test 194 or backtest 187 level, as it can test 200 to 205 level resistance.

Contract Suggestion:
Above 194 level: 195C 03/04 (1.2K Volume @1.80) or 200C 03/04 (2.4K Volume @0.70)
Below 187 level: 185P 03/04 (512 Volume @1.29)

 

 

***NEWS TO LOOK OUT FOR THIS WEEK***

 

  • Non-farm Payroll for February 2022 on Friday (03/04) at 5:30 am PST/8:30 am EST

 

 

 

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