03/29/2022 Watchlist Chart

03/29/2022 Watchlist Chart

 

Watchlist for Tuesday, 03/29/2022

 

$LULU – The stock traded up 3.31% today. LULU is set to report earnings on Tuesday (03/29) aftermarket closes and the weekly expiration is pricing in a 26pt move. There are also rumors of them providing more information on their foot line they want to roll out. On the daily timeframe, LULU recently broke out of the falling wedge pattern and closed near HoD showing relative strength. For the month of March, LULU has seen more calls than puts heading into earnings. Keep an eye on the 334 (HoD on Monday) or backtest 330 level, as it can test 336 to 341 level resistance. Above 341 level, it can test 350 to 361 level resistance. We will consider puts if LULU fails to hold above the 330 level, as it can pull back down to 324 to 317 (50DMA) level support. Under that can drop down to 315 to 310 (20DMA) level support.

Contract Suggestion:
Above 334 or B/T 330 level: 365C 04/01 (610 Volume @3.05)
Below 330 level: 300P 04/01 (647 Volume @2.95) – ER LOTTO, the spreads are too wide on these puts for a good R/R

 

 

$TSLA – The stock traded up 8.03%, on news of another possible stock split, breaking out of the bull pennant that we mentioned on yesterday’s watchlist and approaching the 1100 level. Strong bullish continuation candle with volume, if TSLA can break above it (with volume), it can test 1107-1128 (previous hard resistance) range. Above that, it can test 1144-1150 resistance. We will consider puts if TSLA fails to hold above the 1077 or rejects 1100, as it can pull back down to 1050 and start to gap fill down to 1020 to 1000 level support.

Contract: Suggestion:
Above 1100 level: 1200C 04/01 (72.1K Volume @5.45)
Below 1077 level: 1020P 04/01 (6.6K Volume @6.75) or 1000P 04/01 (39.4K Volume @4.15)

 

 

$SNOW – The stock traded up 7.32% today. After a week of knocking at the 230 level, SNOW finally broke through the 230 level with volume and entered in the gap zone during Monday’s trading sessions. SNOW still has the gap to fill up to 250 with a potential to see the 260s if we see a continuation this week. There was a lot of bullish flow into the 240s and 260s weeklies, so there’s a chance to at least see 240s this week with a possibility of 260s. Keep an eye on the 235 level or backtest 230 level, as SNOW can test 243 to 246 level. Above 246, it can test 251 (near 50DMA) to 253 level resistance. Above that can break out to 265 level. We will consider puts if SNOW fails to hold above the 235 level, as it can pull back down to 230 (must hold for upside) to 222 level support.

Contract Suggestion:
Above 235 or B/T 230 level: 250C 04/01 (16.5K Volume @3.00) or 270C 04/08 (2K Volume @1.95)
Below 235 level: 220P 04/01 (1.3K Volume @2.30)

 

 

$BABA – The stock traded up 1.86% today. On the weekly timeframe, BABA has been trading within a big downtrend channel but the big volume dip off of the 73 over the past two weeks is setting up for an explosive break off this downtrend within the coming weeks. There has also been a strong bullish algo divergence in BABA with BABA gapping up in the HK market currently. Another note is that BABA was showing relative strength compared to the overall market while holding above the gap up from last week. Keep an eye on the 117 or backtest 114 level, as it can test 119 to 123 level resistance. Above 123 level (near 100 DMA), it can test 127-130 resistance. We will consider puts if BABA fails to hold above the 113 (50DMA) as it can pull back down to 110 to 106 level support.

Contract Suggestion:
Above 117 or B/T 114 level: 117C 04/01 (2.3K Volume @ 2.50) or 130C 04/14 (4.9K volume @1.82)
Below 113 level: 110P 04/01 (2.6K Volume @1.42)

 

 

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

  • Consumer Confidence Index for March 2022 on Tuesday (03/29) at 7 am PST/10 am EST
  • Multiple feds speaking on Tuesday and Wednesday
  • Unemployment Claims data on Thursday (03/31) at 5:30 am PST/8:30 am EST
  • Non-farm payroll on Friday (04/01) at 5:30 am PST/8:30 am EST

 

 

 

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