05/10/2022 Watchlist Chart
Watchlist for Tuesday, 05/10/2022
On Monday, SPY fell 3.2%, continuing the downtrend after giving up the 413s support. The next level of support was 405, which it also gave up, so let’s watch that level closely to see if it can reclaim it. Futures are currently up 0.56%.
$CRWD – The stock fell 12.81% during market hours and was down 0.06% after hours. It’s been a rough three days for CRWD after forming three black crows patterns with increased daily sell volume. Based on the three daily candles with that volume, we can see moving pain towards the downside in the near future with those big-bodied sell candlesticks. Both the weekly and monthly indicators show a potential leg lower. Keep an eye on the 144 level, if CRWD can break above with volume, it can test 148 to 153 level resistance. Above 153 level, it can test 155 to 158 level resistance. We will consider puts if CRWD fails to hold above the 142 (LOD on Monday), as it can pull back down to 140 to 138 level support. Below that can drop down to 131 to 127 level support.
Contract Suggestion:
Above 144 level: 150C 05/13 (239 Volume @ 3.95) or 170C 05/20 (1K Volume @ 1.60). if you believe in bounce
Below 142 level: 140P 05/13 (379 Volume @ 5.00) or 130P 05/13 (323 Volume @ 2.17)
$HD – The stock traded up 0.92% during market hours and was up 0.05% after hours. Money was flocking into consumer stable stocks since the tech was taking a huge beating. On the daily timeframe, HD has been trading within a falling wedge pattern and managed to bounce off the lower trend-line and closed a strong bullish engulfing candlestick pattern. HD is set to report earnings next Tuesday (05/17) so if the market decides when it wants to bounce back, we can see a potential ER run-up for HD. Keep an eye on the 300 level (previous strong support now turned resistance), as it can test 303 to 309 level resistance. Above 309 level, it can test 312 (50DMA) to 315 level resistance. We will consider puts if HD fails to hold above the 292 or 300 level rejection, as it can test 288 (LOD on Monday) to 285 level support. Below that can drop down to 280 to 278 level support.
Contract Suggestion:
Above 300 level: 305C 05/13 (1K Volume @ 3.10)
Below 292 or 300 rejection: 290P 05/13 (701 Volume @3.75) or 280P 05/13 (780 Volume @ 1.67)
$AAPL – The stock fell 3.32% during market hours but was up 0.39% after hours. Overall, it was a bloody day for tech as money continues to leave the sector into more stable stocks. AAPL continues to get sold off since last week and closed a strong bearish continuation candle on the daily timeframe with above average daily volume. It’s been trading within an overall flag but with price action below both the 50DMA (165.09) and 200DMA (159.68), it’s still in bearish territory. We would like to see a double bottom at the 150 level hold tomorrow if it’s able to re-test for a relief bounce. Keep an eye on the 153 level, if AAPL can break above with volume, it can test 158 to 160 (near 200DMA) level resistance. We will consider puts if AAPL fails to hold above the 150 level (possible double bottom) or rejects the 153 level, as it can pull back down to 145 to 141 level support. This would break the daily flag and lower it.
Contract Suggestion:
Above 153 level: 155C 05/13 (48.2K Volume @ 2.07) or 160C 05/13 (57.3K Volume @ 0.66)
Below 150 or 153 rejection: 149P 05/13 (10.3K Volume @ 2.20) or 145P 05/13 (19.9K Volume @ 1.15)
***NEWS TO LOOK OUT FOR THIS WEEK***
- Consumer Price Index on Wednesday (05/11) at 5:30 am PST/8:30 am EST
- Unemployment claims data on Thursday (05/12) at 5:30 am PST/8:30 am EST