8/11/2021 Watchlist Charts

8/11/2021 Watchlist Charts

 

8/11 Watchlist

 

$HD – The stock traded up 0.83% during market hours but was down 0.07% after hours. On the daily timeframe, HD was showing relative strength towards the opening bell but started to fade form its highs towards close. It managed to close a somewhat strong bullish candle and still holding with the overall flag. If we continue to see  more news on the new infrastructure bill, HD will benefit greatly from it. HD does report earnings on Tuesday (08/17). Keep an eye on the 332 level, if HD can break above with volume, it can test 334 to 336 level resistance. We will consider puts if HD fails to hold above the 329 level, as it can pullback down to 326 level support.

Contract suggestion:

Above 332 level: 335C 08/13 (2.5k volume @ 0.95)

Below 329 level: 327.5P 08/13 (268 volume @ 0.99)

 

$LMND -The stock fell 2.72% during market hours but was up 0.36% after hours. On the daily timeframe, LMND has formed double around the level 80 level / 81 level support, so we may see a possible relief bonce. You can also that its within a falling wedge pattern as well which is a bullish reversal pattern if it manages to break out. Keep an eye on the 84 level, if LMND can break above with volume, it can test 86 to 88 level resistance. We will consider puts if LMND fails to hold above the 81 level, as it can pull back down to 80 to 79 level support. Wide spread options chain.

Contract suggestion:

Above 84 level: 85C 08/13 (127 volume @ 1.30)

Below 329 level: 80P 08/13 (62 volume @ 0.90)

 

$NIO – The stock fell 2.19% during market hours but was up 0.27% after hours. NIO reports earnings on Thursday (08/11) after market closes and has been trading in a tight range between 43 to 47 levels. On the daily timeframe, we are seeing tight price action within those ranges with decrease in daily volume. If you are looking to play the run up before earnings, it can be a great day trade. keep an eye on the 45 level, if NIO can break above with volume, it can test 47 to 50 level resistance. We will consider puts if NIO fails to hold above the 43 level, as it can pullback to 42 to 40 level support.

Contract suggestion:

Above 45 level: 46C 08/13 (14.4k volume @ 0.85)

Below 42 level: 42P 08/13 (2.3k volume @ 0.71)

 

$RCL – The stock fell 4.34% during market hours but was down 0.19% after hours. Travel stock and airline showed relative strength  compared to the overall market as evidence by closing near high of the day holding majority of its gains despite the choppy market. On the daily timeframe, RCL close a strong bullish candle and held above 200DMA (79.80). We see a double bottom around the 71 level with a key break out level of 82 level resistance. Keep an eye on the 81 level (Wednesday’s candle high of the day), if RCL can break above with volume, it can test 82 (break out level) to 89 level resistance. We will consider puts if RCL fails to hold above the 79 level, as it can pullback down to 77 to 75 level support.

Contract suggestion:

Above 81 level: 82C 08/13 (563 volume @ 0.88)

Below 79 level: 79P 08/13 (1.3k volume @ 0.70)

 

*** News to watch this week ***

  • Consumer Price Index for July 2021 on Wednesday (08/11) at 5:30 am PST / 8:30 am EST
  • Unemployment claims data on Thursday (08/12) at 5:30 am PST / 8:30 am EST

 

 

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