10/25/2021 Watchlist Chart
Watchlist for 10/25/2021
$TSLA – The stock traded up 1.75% during market hours but was down 0.05% after hours. TSLA was showing relative
strength compared to the overall market and managed to close near high of the day. On the 4hr timeframe, TSLA broke
out of the flag and has continue to break above the psychological resistance of 900 and closed strong. We would like to see TSLA re-test 900 again for a better re-entry but you can take it at Friday’s HOD (910) for entry as well. If TSLA back test 900 or breaks above 910 level with volume, it can test 915 to 930 level resistance. Above 930 level, it can test 940 to 946 level resistance. We will consider puts if TSLA fails to hold above the 900 level, as it can pullback down to 886 to 886 level support.
Contract Suggestion:
Above 910 level or back test 900 level: 950C 10/29 (33.2K Volume @5.20)
Below 900 level: 850P 10/29 (39K Volume @5.15)
$PYPL – The stock fell 1.16% during market hours but was up 0.24% after hours. PYPL dropped drastically after news of them trying to acquire pintrest. On the daily timeframe, PYPL has continued to show weakness relative to the market as evidenced by close near low of the day. PYPL currently is in a falling knife phase, so its best to wait for it to show some bottom and consolidation before buying the dip back up. Keep an eye on the 239 level, if PYPL fails to hold above this level, it can test 234 (strong support, bounced multiple times at this level) to 227 level support. We will consider calls if PYPL 241 level, as it can test 243 to 250 level resistance.
Contract Suggestion:
Above 241 level: 250C 10/29 (9.6K Volume @2.30)
Below 239 level: 230P 10/29 (3.1K Volume @1.95)
$AFRM – The stock fell 0.08% during market hours but was flat after hours. On the 4hr timeframe, AFRM was forming a double top at the 161 level but managed to hold above the key support of 154 level. So far, its still lacking volume to break above that all time high. We may see a period of consolidating before a break higher or pullback since it ran soo much these past few months. Keep an eye on 157 level or back testo 154 level for calls, as it can test 161 to 166 level resistance. We will consider puts if AFRM fails to hold above the 154 level, as it can pullback down to 147 to 140 level support.
Contract Suggestion:
Above 161 level or back test 154 level: 165C 10/29 (2.3K Volume @ 2.45)
Below 154 level: 150P 10/29 (1.2K Volume @3.60)
$AMZN – The stock fell 2.90% during market hours and was down 0.17% after hours. AMZN was showing relative
weakness compared to the overall market as it close near low of the day. Despite QQQ moving to new highs, AMZN
continued lower, and it closed a strong bearish engulfing candle. Its quickly approaching the 200DMA (3320.21) which
we can see a possible bounce play there but it more volumes come in, this can slice right through and continue to the
3300 test. Keep an eye on the 3344 level or test of the 3320 (200DMA) for call entry, as it can test 3359 (50DMA) or
3367 level resistance. We will consider puts if AMZN fails to hold above the 3320 level, as it can test 3300 to 3264 level support. AMZN has ER this week, so option premiums are high. Beware playing AMZN this week.
Contract Suggestion:
Above 3344 level or back test 3320 level: 3500C 10/29 (4.7K Volume @20.00)
Below 3320 level: 3200P 10/29 (1.7K Volume @24.55)
***NEWS TO LOOK OUT FOR THIS WEEK***
- Unemployment claims data on Thursday (10/28) at 5:30 am PST/8:30am EST