03/18/2022 Watchlist Chart

03/18/2022 Watchlist Chart

 

Watchlist for Friday, 03/18/2022

 

$HD – The stock traded up 1.65% during market hours but was down 0.85% after hours. On the daily timeframe, HD has been trading within an ascending triangle with a nice gap to be filled from 337 to 344 from their earnings gap down. Despite the move higher, the volume still remains below average so there may be a fake-out if volume doesn’t come with the 337 level break. Keep an eye on the 337 level, if HD can break above with volume, it can start to gap fill and test 342 to 344 level resistance. Above 344 level, it can test 349 (200DMA/50DMA) to 355 level resistance. Consider puts if HD fails to hold above the 333 level, as it can test 329 to 324.

Contract Suggestion:
Above 337 level: 340C 03/25 (384 Volume @3.25)
Below 333 level: 330P 03/25 (76 Volume @ 2.97)

 

 

$MRNA – On the daily timeframe, MRNA broke out of the falling wedge with the bullish RSI divergence playing out on that break Currently MRNA closed a doji after a monster run the previous day with the 50DMA (164.07) acting as dynamic support for it. If there’s any more positive vaccine news, MRNA is set to test the breakout level of 177 again. Keep an eye on the 177 (break out level) or backtest 166 level, as it can test 180 to 188 level resistance. Above that can test 190 to 198 level resistance. Consider puts if MRNA fails to hold above the 166 level, as it can pullback down to 164 (50DMA) to 160 level support. Below that can drop down to 153 to 150 level support.

Contract Suggestion:
Above 177 or B/T 166 level: 170C 03/18 (2.9K Volume @2.50) or 180C 03/25 (1.3K Volume @4.15)
Below 166 level: 165P 03/18 (2.5K Volume @2.00)

 

 

$SHOP – The stock traded up 5.62% during market hours but was down 1.31% after hours. On the weekly timeframe, SHOP is setting up for a huge leg up if it can hold above the 600 level this week as it broke out of the falling wedge pattern. Strong bullish engulfing off the 510 level support with above-average volume. The weekly RSI is just shy above the oversold zone and it looks like at last a 200 Weekly MA test at 705.61. There were tons of flow on those 700Cs weeklies, so we may see a test of this if the market continues another trend day. Keep an eye on the 666 level or backtest 650 level, as it can test 700 (near 200DMA) to 714 level resistance. Above 714 level, it can test 753 to 777 level resistance. Consider puts if SHOP fails to hold above the 650 level, as it can pullback down to 600 to 590 level support. Below that can drop down to 555 to 525 level support. Below that would test 510 double bottom.

Contract Suggestion:
Above 666 or B/T 650 level: 680C 03/18 (2.1K Volume @4.40) or 700C 03/18 (6.5K Volume @1.75)
Below 650 level: 620P 03/18 (606 Volume @2.75)

 

 

$TSLA – The stock traded up 3.73% during market hours but was down 0.65% after hours. On the daily timeframe, TSLA broke out of the falling wedge pattern and closed near the high of the day showing relative strength. During Thursday’s trading session, the flow was slamming those 900Cs towards the end of the day after a huge flow on that 850s intraday. Similar to SHOP, TSLA is setting up for a huge move back to 1000 again if the market allows. Keep an eye on the 880 or backtest 860 level, as it can test 891 (14DMA) to 900 level resistance. Above 900 level, it can test 915 to 930 (previous support turned resistance). Above that can test 945 to 964 level resistance. Consider puts if TSLA fails to hold above the 860 level or 880 rejections as it can test 850 to 835 level support. Below that can drop down to 820 to 800 level support.

Contract Suggestion:
Above 880 or B/T 860 level: 900C 03/18 (93K Volume @2.52)
Below 860 level: 840P 03/18 (31.3K Volume @2.77)

 

 

 

 

***NEWS TO LOOK OUT FOR TOMORROW***

  •  Quadruple witching day – largest OpEx since 2019: expect lots of volume and chop
  •  US/China Presidents call (AM)
  •  Home Sales Numbers (AM)

 

$SPX – Pivot at 4377, levels above: 4420/4438, levels below: 4355/4326

 

 

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