Watchlist for 12/06/2021
$MRNA – The stock traded up 1.73% during market hours but was down 0.56% after hours. The daily chart for MRNA looks erratic but currently its trading within an inside day pattern with decreasing selling volume. Now, MRNA is currently under the 50DMA (312.86) which is acting as a dynamic resistance but held above the 9DMA (306.56). Like all inside day pattern, you would play the break above the previous candle’s high or puts when the previous candle’s low breaks. MRNA can go either way. Keep an eye on the 316 level, if MRNA can break above with volume, it can test 325 to 332 level resistance. We will consider puts if MRNA fails to hold above 306 (9DMA), as it can pull back down to 300-294 support.
Above 316 level: 330C 12/10 (2.9K Volume @7.30)
Below 306 level: 290P 12/10 (688 Volume @9.35)
$SNOW – The stock fell 4.21% during market hours but was up 0.55% after hours. On the daily timeframe, SNOW is currently trading within an inside day pattern, and we can see that SNOW buyers were sitting at the 335 level (evident by long bottom wicks there). Overall, SNOW is still within a downtrend but if SNOW breaks above that inside day pattern with volume, it can potentially break out of that downtrend for a reversal. Keep an eye on 352, if SNOW can break above with volume, it can test 362-367(20DMA) level resistance. Above 367, it can test 375-386 level resistance. We will consider puts if SNOW fails to hold above 343 (50DMA), as it can pullback down to 335 to 319 supports. Premiums leaning bearish.
Above 352 level: 370C 12/10 (214 Volume @4.80)
Below 343 level: 330P 12/10 (943 Volume @7.50)
$SHOP – The stock fee 2.57% during market hours but was flat after hours. On the daily timeframe, SHOP has found a temporary support at the 200DMA (1365.36) and buyers stepped in with volume to try to push this back higher but were unable to close it green. It did close a pinbar off that support which is a decent sign for bulls but continues to find resistance that the 50DMA (1477.28). Currently, its sandwiched in between those two moving averages, acting as a dynamic support and resistance levels. Overall, it’s still in a downtrend. On the 1hr timeframe, SHOP showed some around the 1354 level with the bullish engulfing with some volume and managed to close above the 9MA (1407.99) with MACD flipping green. It’s too early to say it’s a reversal, but a good sign SHOP is
trying to bottom out. Keep an eye on1429, if SHOP breaks above with volume, it can test 1452 to 1469 level resistance. Above 1469, it can test 1486 to 1500 level resistance. We will consider puts if SHOP fails to hold above 1400, as it can pull back down to 1378 to 1365 level support. Below 1365, it can drop down to 1354 to 1340 level support.
Above 1429 level: 1500C 12/10 (509 Volume @15.70) or 1550C 12/10 (256 Volume @7.80)
Below 1400 level: 1300P 12/10 (410 Volume @17.80) Wide Spreads on SHOP in general
$MSFT – The stock fell 1.97% during market hours and was down 0.10% after hours. On the daily timeframe, MSFT broke down with volume that 330 level (previous strong support) and bounced off the 50DMA (317.07). If we continue to see tech sell off more, MSFT would be a prime candidate to re-test the 50DMA down to the 100DMA in that scenario. Keep an eye on 324, if MSFT can break above with volume, it can test 330 to 333 level resistance. We will consider puts if MSFT fails to hold above 320 as it can pull back down to 317 (50DMA) to 313 supports.
Above 324 level: 330C 12/10 (7.1K Volume @2.70)
Below 320 level: 315P 12/10 (4.7K Volume @3.55)
***NEWS TO LOOK OUT FOR THIS WEEK***
– Unemployment claims data on Thursday (12/09) at 5:30 am PST/8:30am EST
– CPI data on Nov 2021 on Friday (12/10) at 5:30am PST/8:30EST
– Federal Budget for November 2021 on Friday (12/10) at 11am EST/2pm EST