Watchlist Update – 2020-12-28
2020-12-27 Watchlist: $DKS, $FUV, $HBI, $KALA, $ZNGA
New Add: $DBX
Update on previous watchlist
Keep in mind a watchlist is just that. These are tickers that have interest for potential trading opportunities, but doesn’t mean that everything lines up with them. In many cases, we are still waiting for something to take place in order to finally determine that yes, this is something to play. In other cases, it is trying to find the right entry point at the right time.
In all cases, due your due diligence, have your own plan, and trade to your plan.
DKS
$DKS is one that I tried to get in last Thursday, however, the price action never came down to my fill. Too bad it didn’t.
After an initial gap up, in the first hour, it came down to fill the gap and then went right back up and continued to climb all day, settling above the 50.0% retracement as it looks to finish the W pattern before its next leg up.
Still looking to get in this play.
FUV
$FUV spiked up early to the 61.8 retracement on the previous charts but didn’t hold and came back down to where it was playing yesterday, at the 61.8% extension. Overall, the chart looks good; however, I’d like to see it with a little more energy as it goes up so it can hold.
HBI
$HBI is another one that rose early and came back down to yesterday’s level as the day progressed. In this case, it hit the 50.0% retracement and came back down to the multi-day VWAP.
This has been resting for the last 3 days at this level, halfway between the fibs. Last time it did this, it held between fibs without testing either for 9 days, and then moved up over a few days. Looks to be rising one step at a time.
KALA
$KALA had another down day. The question is, has it hit bottom? Today, it reached the 0.0% retracement from its downward cycle in October.
Is this a double bottom from where it will rise, or will this be a continuation play?
After hours today, there was some buying that pushed it up briefly over the multi-day VWAP, and it finished the late session about 3% higher than its close.
Watch the 7.26 line closely. If it falters there, I’d be tempted to take some puts on this. For a push back up, I’d like to see it get over and stay over the 61.8% extension from last week (7.80).
ZNGA
$ZNGA is my nemesis. Timing, timing, timing. After testing the magic round number of 10 and being rejected, it came back to a 61.8% retracement to settle in around 9.73 at the end of the day.
The question isn’t whether it will break 10. It is when it will break it and hold. When it does, I can see a nice quick run to 11. Will this be a $DGLY and consolidate forever first, or will it try again this week and succeed?
In my micro-account, I did get in some positions for this week’s weeklies today. I’m holding those overnight in that account as it has good support at this level, which can help push it back to try again quickly.
New Addition
DBX
$DBX has recently hit its 52-week high and continues to push up against it.
Since the beginning of November through this past week, it has been pushing higher, as shown in the daily chart. In this run-up, it has been a nice steady progression, and the daily candles do line up interestingly with the fibs as it continued along the way.
The hourly chart shows good support at the 78.6 extension (23.55). It consolidated here before poking up to the 52 week high.
Now, the question is, does it have the energy to move up again, creating a new higher high, or will it consolidate for a while, push back some, before continuing its momentum up? In the meantime, it is on the radar to watch.