04/06/2022 Watchlist Chart
Watchlist for Wednesday, 04/06/2022
$FB – The stock fell 0.88% during market hours, ugly daily candle close off the rejection near the 235 level. The news of China backing Russia came near the high of the day early in the morning which pulled the market down right after that. The ideal entry would be for FB to back-test that 228 or 226 level (50DMA) to validate the support for a move higher. Keep an eye on the 235 or backtest 230 level, if FB can break above with volume, it can set up for a move to test 241 to 245 (break-out level) resistance. We will consider puts if FB fails to hold above the 230 level, as it can pull back down to 228 to 226 (50DMA) level support.
Contract Suggestion:
Above 235 or B/T 230 level: 235C 04/08 (39.5K Volume @2.15) or 240C 04/08 (55.1K Volume @0.90)
Below 230 level: 225P 04/08 (14.9K Volume @1.07)
$SHOP – The stock fell 3.35% during market hours and was down 0.56% after hours. On the daily timeframe, SHOP has been trading within a tight wedge with the 700 level continuing to act as strong support. You can also see the daily volume continues to remain low while SHOP consolidates in a tight range for a potential break out or break down. Consider this as SHOP is coiling for a larger move soon. Based on flow there was a lot of 650Ps weekly expiration that came in towards the latter half of the day with some small 800Cs next week. On the weekly timeframe, we see long top wicks off the 753 level near the 9WMA (742.77) range which continues to act as a huge resistance level. Keep an eye on the 700 level, if SHOP fails to hold above this level, it can test 689 (14DMA) to 666 level support. Under 666, it can pull back down to 650 to 600 level support. We would consider calls if SHOP can break 714 or backtest 700 level, as it can test 753 (hard resistance) to 777 level resistance.
Contract Suggestion:
Above 714 or B/T 700 level: 750C 04/08 (3.6K Volume @6.30)
Below 700 level: 650P 04/08 (3.8K Volume @3.30)
$RBLX – The stock fell 1.98% during market hours. On the daily timeframe, RBLX continues to have a prime set up towards the upside on this inverse head and shoulder pattern. As of now, it continues to form in the right shoulder with support near that 44 levels. Once the market decides to move higher, RBLX is setting up for a big break out toward the upside. Keep an eye on the 53 levels (near the 50DMA), as it can test 57 to 60 level resistance. We will consider puts if RBLX fails to hold above the 49 levels, as it can pull back down to 46 to 44 level support. Below that can drop down to 40 level support.
Contract Suggestion:
Above 53 level: 55C 04/14 (1.5K Volume @0.70)
Below 49 level: 48P 04/08 (1.8K Volume @1.10)
$SE – The stock fell 5.92% during market hours. On the daily timeframe, SE has been trading within a flag and holding above the gap from last month. Unfortunately, due to the news that came out during Tuesday’s trading sessions, SE closed an ugly big-bodied bearish candlestick but it was with low volume. This may be considered a small pullback after a break-out attempt above 129 the day before. On the weekly timeframe, we can continue to see the 129 level acting as a huge resistance due to the low top wicks on the weekly off of that level. Keep an eye on the 129 level, if SE can break above with volume, it should test 135 to 140 level resistance. We will consider puts if SE fails to hold above the 123 level (9DMA), as it can pull back down to 120 to 115 (strong support).
Contract Suggestion:
Above 129 level: 130C 04/08 (555 Volume @2.34) or 135C 04/08 (731 Volume @1.33)
Below 123 level: 120P 04/08 (349 Volume @2.12)
***NEWS TO LOOK OUT FOR THIS WEEK***
- FOMC minutes on Wednesday (04/06) at 11 am PST/2 pm EST
- Unemployment claims data on Thursday (04/07) at 5:30 am PST/8:30 am EST