Long Options Watchlist – 2021-01-10
Weekly Watchlist: $BRP, $CRM, $CVI, $DHI, $DKS, $GE, $HBI, $NLS, $ONEM, $PINS, $SNAP, $SOLO, $WDAY, $ZNGA
The watchlist are those tickers that I reviewed that I felt I can hit whatever targets at within a week. I am looking at now staying in most positions too long, capturing profit, and moving on. Sometimes, that may mean that I jump out and find a re-entry at a better price for the next move.
BRP
$BRP has been a steady riser since March, hitting its most recent 52-week high in late November.
As can be seen in the first daily chart here, it has rebounded to almost 4x its low around the March crash to its high, regularly rising, consolidating, and then rising again. It looks to be coming toward the end of its most recent consolidation cycle.
The 2nd daily chart zooms in on the last few months, highlighting both the previous channel, and the new channel its price action has moved into.
The hourly chart helps to detail the bottom of the most recent channel. In this, there are two sets of extensions. One is the long term, most of year extension from its March low to its 52 week high, the other is from its bounce off that 61.8% line to the 52 week high. Combined, they give more information on the current channel.
The longer-terms 78.6% is serving as secondary support, where it dips down close to it and it pushed upward. In the one day where it pushed under it, it was immediately pushed back up. The primary support is at the shorter-term’s 50.0% that it looks to be moving up from.
I would consider another dip in the next two days to $29 a bargain price for its next leg up, with a short term target of around $31.60 for a quick profit. It hasn’t tested that line enough in the last couple of weeks to get a feel if it will break through yet. But, when it does, a test of the 52-week high around 33.50 is next up.
CRM
Given that business models have been shifting to cloud platforms, it makes sense to keep $CRM on the radar.
In looking at the first daily chart, CRM had a nice run-up in 2020 from March until September, especially have its big gap-up after its August earnings. However, since then, the price action has been coming down as it has been consolidating.
The second daily chart focuses in on the last few months. With the recent action, the August gap has now been filled, removing the pressure to fill that gap. Instead, a more recent gap to the upside now exists for what may be filled soon.
I look at the 218-220 price range for an entry, with a short-term target around 234.75, with the next target at 240.60.
DKS
$DKS has been frustrating because it hasn’t been cooperating with me being able to get my entries as it does what I expected it to do. If I had been filled on my previous entry, I would have captured by profits on Friday.
From there, a re-entry in the next day or two is warranted. The daily chart shows the completion of the W, indicating it is ready to move again in the direction of the overall trend, which is up.
For this, I’d like to see a brief retreat back to 63, even if only in the first 30 minutes on Monday, for an entry for the next leg, with a target of 71.
NLS
Home fitness is likely here to stay. PTON has made waves, but don’t forget $NLS.
From a low of $1.20, $NLS has soared to a high of 28.43. Since then, it has come down and been consolidating in a channel.
When looking at the hourly chart, it has started to use the 200-hr SMA as support this past week and looks ready to get back to the top of the channel, and possibly break up into the upper one.
I’m looking for an entry at the bottom of the channel, where it would briefly dip under the 200 SMA (entry around 18.25), with an initial target at the top of the channel of 22.60. From there, a push up to 28.40 would be in order, before it then consolidates in that channel (22.60-28.40) before breaking highs again.
SOLO
EV plays are in right now, but SOLO seems to have been ignored this week. Since the big EV run in November, it has come down and been trading within a channel, and I love fib channels.
The daily chart shows the action since October. After the first run and then running up a four days later, the price action went down to the 50.0% retracement on the initial run up and has been consolidating in that channel since, while never actually testing (touching) the intraday low on 12/2 again, using the 61.8 as its support.
The hourly chart shows the channel over the last few weeks, with the 23.6 retracement as the top side of this.
I am looking for an entry at the bottom of the channel around 6.30, with an absolute stop loss at 5.80. From there, the target for the channel is 7.70, as it will likely punch up between the upper lines during the next test.
For those looking for a breakout, a run up to 10.50 is likely, then pulling back around 8.80 for consolidation.
WDAY
Many technology companies have taken a recent hit with sector rotation out of a techs; however, $WDAY is one that will have staying power in the long term, as a growing number of companies and organizations of all sizes have moved to its services.
The daily chart shows its price action throughout its 2020 run-up. And, as ken be seen, it has recently moved into a higher channel from its September to December price action.
The hourly chart shows it hitting its 52-week high and then retracing and popping back up to the 78.6 extension. I look for at least one more pop down to about 224 before fully settling in the channel and moving back toward its high.
I’m targeting 224 for an entry, with 233.50 as the first target.
Other Entries
CVI
$CVI looks to be rebounding with its sector. Its current channel is between the 61.8 and 100.0 of its most recent climb, the latter which also is the 23.6 retracement from its 51-week high to low. Entry around 14.10. Target around 17.00. If it breaks out, the next target up is 21.70.
DHI
Consolidating and close to the bottom of its current channel. Short term entry around 65.50. First target for channel at 73.50. Next target at 77.90.
GE
As non-tech sectors are coming into the rotation, tickers like GE are back in play. It has been on an upward trajectory since the beginning of October. As it consolidates between the 78.6 and 61.8 retracements, I look for it to test the bottom of that channel one more time before breaking out above it. I look for an entry around 10.30, with the first target at 11.60, and with a breakout, back up to 13.25.
HBI
This has been another one that has avoided coming to my entries and then doing what I expected. As this has established itself in a new channel this couple of weeks, I am looking for this to test the bottom of the channel one more time. With that, I have an entry of about 14.50, with a target exit about 15.50. But, depending on how the price action gets there, that target can change to 16.60 to fill the gap up and get to the 76.8 retracement.
NIO
I took profits in this on Friday. The chart still looks good for a good move up, so I’m looking for a re-entry. Now, the question is, does it feel the need to fill Friday’s gap up or not? As many charts do look to fill gaps, and as this is one that is likely to move up soon, if it does fill a gap, it will most likely do so early this week.
For this, a re-entry around 54.50 would be great, but 55.70 may be more realistic. From there, a quick run to 62.75 could be in the works, with the next big pause around 70.
ONEM (Shorting opportunity)
$ONEM has been close to its 52.week high in the last 2 weeks, but it has been running steadily without much of a pullback for almost 2 months. I look for this to pull back to consolidate a bit before testing the highs again.
So, for a play to short the stock, I look for an entry around 43.50, with an initial target down at 38.50, and a stretch target of 33.50.
PINS
Just picked up a win on $PINS last week, and I think another win can be in store. Another channel player. Entry at the bottom around 68.70 with a target at the top of 75.40, with a intermediate target at 70.50.
SNAP
$SNAP was another channel winner last week. I look for price action for one more swing to the bottom and back up before breaking out. For the channel play, buy around 50, with the upper channel target of 53.90, and a breakout target of 58.10.
ZNGA
$ZNGA is my Moby Dick. It is that big white whale that I continue to hunt and wrecks my boats. But, like Ahab, you just cannot let go until you conquer the beast.
$ZNGA is poised to grow and to explode at some point, but the question is always, when? It is in a good space that will continue to grow. It isn’t the biggest in its space, which in some respects, gives it more room to do something.
I fully believe that this is on the verge of crashing through 10 and running a little. I am looking at an entry around 9.70 with 11.10 as my target.
Didn’t make this week’s cut
Considered, but didn’t make the cut this week: $FUV, $GM, $LOW, $PCG, $PYPL, $SQ, $WFC, $WMT