04/07/2022 Watchlist Chart
Watchlist for Thursday, 04/07/2022
$TWTR – The stock fell 0.41% during market hours. During Wednesday’s trading sessions, TWTR was one of the few stocks that showed relative strength for most of the day despite the volatility from the indexes. We continue to see TWTR hold above the gap up from Elon’s acquisition with a rejection at the 200DMA (51.96) near the point of control (POC) on the volume profile as well. Looking at the flow, there continue to be more calls than puts which keeps TWTR bullish, mainly with a lot of the money flowing into those weeklies and next week’s expiration in the 50s strike. Keep an eye on the 51 levels, if TWTR can break above with volume, it can test 53 to 55 level resistance (HOD on Tuesday). Above 55 can test 59 to 61 level resistance. We will consider puts if TWTR fails to hold above the 50 levels, as it can pull back down to 47 and start to gap fill down to 45 to 43 support.
Contract Suggestion:
Above 51 level: 53C 04/14 (7.7K Volume @1.45) or 55C 04/14 (29.7K Volume @0.99)
Below 50 level: 49P 04/08 (8.8K Volume @0.57)
$CRWD – The stock fell 3.97% during market hours. On the daily timeframe, CRWD broke down the flag after the gap down during Wednesday trading sessions and is set to test the 200 level if the market pulls back more. The daily MACD flipped bearish with an increase in daily volume. Keep an eye on the 208 level, if CRWD fails to hold above this level, it can pull back down to 200 (near 100DMA) to 194 level support. We would consider calls if CRWD breaks above 214, as it can fill the gap to 220 to 230 level support. The 230 level continues to be a difficult resistance for CRWD to get through as well as the 200DMA near there.
Contract Suggestion:
Above 214 level: 220C 04/08 (441 Volume @1.70) – Wide Spreads
Below 208 level: 205P 04/08 (409 Volume @2.37) – Wide Spreads
$MRVL – The stock fell 2.65% during market hours. During Wednesday’s trading sessions there was some unusual activity in the 68Cs 4/14 expiration with high volume with the largest buy at a 1.42M sweep. Basically, someone knows something is going to happen. On the daily timeframe, MRVL is setting up an inverse head and shoulder pattern despite the daily MACD flipping bearish. You can see a clearer image of the pattern on the weekly timeframe. Keep an eye on the 68 or backtest 65 levels, if MRVL can break above with volume, it can test 70 to 72 level resistance. Above 72 levels, it can test 76 level resistance. We will consider puts if MRVL fails to hold above the 65 levels, as it can pull back down to 63 to 59 level support.
Contract Suggestion:
Above 68 level or b/T 65 level: 68C 04/14 (33.9K Volume @1.59) or 70C 04/14 (621 Volume @0.98)
Below 65 level: 64P 04/14 (2.1K Volume @1.37)
$CVX – The stock traded up 0.89% during market hours. On the daily timeframe, CVX has been trading within a larger wedge and is in a tight consolidation pattern with low volume. This is setting up for a big break either to the upside or downside (think of it as a compression spring, the longer it’s compressed, once released, the expansion will be violent). Keep an eye on the 164 level, if CVX fails to hold above this level, it can pull back down to 162 to 160 level support. Below 160 levels, it can drop down to 158 to 155 level support. We would consider calls if CVX can break above the 167 level, as it can test 170 to 173 level.
Contract Suggestion:
Above 167 level: 170C 04/14 (1.7K Volume @1.05)
Below 164 level: 160P 04/14 (1.2K Volume @1.19)
***NEWS TO LOOK OUT FOR THIS WEEK***
- Unemployment claims data on Thursday (04/07) at 5:30 am PST/8:30 am EST