10/15/2021 Watchlist Chart
Watchlist for 10/15/2021
$MSFT – The stock traded up 2.17% during market hours and was up 0.21% after hours. MSFT was showing relative strength compared to the overall market and managed to close near high of the day. On the daily timeframe, MSFT broke out of the wedge, consolidated for a week, then gapped up with above average volume. If we start to see a continuation in tech, MSFT can test all time highs again. Keep an eye on the 303 level, if MSFT can break above with volume, it can test 306 (all time high levels- been rejected twice so far), to 309 level resistance. We will consider puts if MSFT fails to hold above the 302 level, as it can pullback down to 300 to 297 level support.
Contract Suggestion:
Above 303 level: 305C 10/22 (9.3K Volume @1.96)
Below 302 level: 300P 10/15 (17.2K Volume @0.44)
$NVDA – The stock traded up 3.85% during market hours and was up 0.58% after hours. The semiconductor sector was running hot during Thursday trading sessions from TSM’s earnings report pre-market. NVDA was showing relative strength compared to the overall market as it managed to close at high of the day at the closing bell. On the daily timeframe, NVDA gapped up and broke above the mini downtrend. Its currently holding above the golden pocket zone of the Fibonacci retracement levels with the daily MACD flipping green with the trend reversal. Keep an eye on the 217 level, if NVDA can hold above this level, it can test 220 to 223 level resistance. Above 223 level, it can test 225 to 229 level resistance. We will consider puts if NVDA fails to hold above the 215 level, as it can pullback down to 213 to 211 level support.
Contract Suggestion:
Above 217 level: 220C 10/15 (35.4K Volume @0.53) or 222.5C 10/22 (5.4K Volume @1.93)
Below 215 level: 210P 10/22 (3K Volume @1.48)
$CHWY – The stock fell 0.19% during market hours but was up 0.13% after hours. On the daily timeframe, ever since the gap down from their earnings report, CHWY has continued to downtrend ever since. Its currently trading within a falling wedge and has been rejected at the top trendline each time it has tested it. So far CHWY has been basing around the 62 level and so far, buyers have stepped in here. Keep this on watch for a potential reversal play once it can catch enough volume to break this falling wedge. Keep an eye on the 64 level (9MA), if CHWY can break above with volume, it can test 66 to 69 level resistance. We will consider puts if CHWY fails to hold above the 62 level, as it can pullback down to 60 to 58 level support.
Contract Suggestion:
Above 64 level: 65C 10/29 (467 Volume @1.25)
Below 62 level: 62P 10/22 (1.16 Volume @1.35)
$GOOGL – The stock traded up 2.59% during market hours and was up 0.14% after hours. Just like NVDA, GOOGL has similar daily chart pattern break out as well. On the daily timeframe, GOOGL managed to break out of the downtrend line and closed a strong bullish candle. The daily MACD flipped green as well with RSI over 55 showing a bullish sentiment. Also, the daily moving averages are curling up with above average volume on Thursday trading sessions. Keep an eye on the 2827 level (HOD) or back test of 2820 level, as it can test 2843 to 2856 level resistance. We will consider puts if GOOGL fails to hold above the 2820 level, as it can pull back down to 2814 to 2808 level support. Below that can test 2800 support. GOOGL option premiums spreads are usually wide and don’t freak out if you are watching the 1min timeframe on those wild gap ups and downs.
Contract Suggestion:
Above 2827 or back test 2820 level: 2840C 10/15 (7.1K Volume @4.00) – Wide Spreads
Below 2820 level: 2800P 10/15 (2.4K Volume @2.80)
***NEWS TO LOOK OUT FOR THIS WEEK***
- OPEX on Friday (10/15) – Expect volatility this week