03/30/2022 Watchlist Chart
Watchlist for Wednesday, 03/30/2022
$NFLX – The stock traded up 3.52% during market hours. On the daily timeframe, NFLX broke out of the mini wedge and closed a decent daily candlestick pattern but daily volume still lacking a bit. With low volume, this can be a concern of a false breakout. Overall, NFLX is setting up for a move back to 400 with some 405C weekly flows that came in during Tuesday’s trading sessions. Keep an eye on the 392 level, if NFLX can break above with volume, it can test 400 to 412 level resistance. Above 412 level, it should test 421 to 428 level resistance. We will consider puts if NFLX fails to hold above the 390 (50DMA) as it can pull back down to 380 to 376 (9DMA) level support.
Contract Suggestion:
Above 392 level: 400C 04/01 (17.3K Volume @3.20)
Below 390 level: 385P 04/01 (1.3K Volume @3.65) or 380P 04/01 (2K Volume @2.21)
$MRNA – The stock traded up 4.37% during market hours. Vaccine stocks popped during Tuesday’s trading sessions after the FDA approved PFE 4th booster shot for people over the age of 50 years old. On the daily timeframe, MRNA broke out of the flag and closed a strong bullish candle. There was some mix flow on MRNA with more puts that came in later in the day compared to earlier in the day with calls. Keep an eye on the 182 (HOD on Tuesday) or backtest 177 level, as MRNA can test 188 to 193 level resistance. We will consider puts if MRNA fails to hold above the 177 level, as it can pull back down to 172 (9DMA) to 166 level support.
Contract Suggestion:
Above 182 or B/T 177 level: 185C 04/01 (4.9K Volume @3.50) or 190C 04/01 (6K Volume @2.00)
Below 177 level: 175P 04/01 (1.6K Volume @3.10) or 170P 04/01 (1.6K Volume @2.30) – Wide Spreads
$RBLX – The stock traded up 5.21% during market hours but was down 0.73% after hours. On the daily timeframe, RBLX has been forming an inverse head and shoulder pattern (bullish reversal pattern) and has seen some flow come into the 54Cs weekly expiration. The key break out of this pattern would be above the 53 levels but has continued to find rejection near the 51 levels during Tuesday’s trading sessions. Keep an eye on the 53 levels, if RBLX can break above with volume, it can test 55 (50DMA) to 57 level resistance. Above 57 levels, it can test 60 to 64 level resistance. We will consider puts if RBLX fails to hold above the 50 levels, as it can pull back down to 48 to 46 level support.
Contract Suggestion:
Above 53 level: 55C 04/14 (5K Volume @1.70)
Below 50 level: 49P 04/01 (598 Volume @0.80)
$SHOP – The stock traded up 6.04% during market hours. On the daily timeframe, SHOP broke out of the bullish pennant and closed a strong bullish continuation candle. During Tuesday’s trading session, SHOP found big resistance at the 50DMA (754.30) which prevented it from pushing higher but there’s flow into those 800Cs so there’s a chance SHOP can see that this week. Overall, SHOP broke out of the falling wedge on the daily and it’s setting up for a move back to 1000s soon. Keep an eye on the 753 (Near 50 DMA), if SHOP can break above with volume, it can test 777 (break out level) to 800 level resistance. Above 800 level, it can test 820 and eventually to the 840-850 volume gap up a level. We will consider puts if SHOP fails to hold above the 714 level, as it can pull back down to 700 to 690 (9DMA). We would long 1000Cs if SHOP closes above 777 on daily.
Contract Suggestion:
Above 753 level: 800C 04/01 (13.7K Volume @4.80)
Below 714 level: 700P 04/01 (1.1K Volume @5.40)
***NEWS TO LOOK OUT FOR THIS WEEK***
- 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