Options Watchlist – 2021-01-31
Weekly Watchlist: $JMIA, $UTZ, $FSLY, $GM, $SDC, $SNAP, $SIG
Seems as if the ones I wasn’t able to get my entry all took off this past week. That could mean that I’m doing a little something right but need to learn a little more. We should always be learning as everything continually evolves.
This past week, we saw something that could change large pieces of the status quo, as the retail investor took on the institutional investor and ‘won.’ In the short term, it may have caused damage that will hurt the retail investor. But, in the long term, it may be something that was needed to push needed evolution in the market. I’ll have more on this sometime later.
Here we go:
New Plays
JMIA
A new play that is a replay of one earlier this year. $JMIA is a ticker that does get some attention, which is always good to see.
Over much of the last week, it has been poking its head above the 161.8 retracement on my chart. Poke enough through it and the resistance gives way. Also, this is supported by the 8-Day EMA throughout the chart. And, the price action is not back to where this support has caught up with the candle wicks.
$JMIA also has a 28% short float, but with volume, the short ratio is only 0.89. So, it can be subject to quick run-ups, but they may not be sustained over more than a day.
I’m looking to get in this around 54 (around the 8 EMA) and riding it up to 74 (261.8% retracement) as a long target.
UTZ
When I ran my experimental FinViz scan today, it was the shortest list that I have seen thus far, as it returned only four tickers. This was the only one with decent options volume to make a play worthwhile.
$UTZ started trading at the end of August, so we only have about 5 months of history to look at. But, the chart setup and other factors work in its favor to make this list.
The daily chart shows a regular advance and consolidation cycle, settling at each of the Fibs on its path up. In addition to the fibs, the 21 day EMA serves as support throughout this cycle that propels the ticker higher.
Add to this a 55.7% short float (and a 4.23 short ratio), under the current environment, this could receive some attention and propel even higher and faster. But, even without that, the setup looks good and about ready to make the next move.
I’m looking to get in about 22.80 (about where the 21D EMA should be on Monday or Tuesday, with a target around 27 (or higher if the shorts for this are targeted).
FSLY
$FSLY is off its October highs, but is working back toward them.
Using both an extension and a retracement on the daily chart, there are some strong support and resistance levels along its path. Currently, it is consolidating along one of these strong support/resistance areas around 109.25. Once through this area, it has a chance to move relatively quickly toward its 52-week high.
From a chart play, an entry around the 8 EMA when the 21 EMA is close would signify a good time to get in. From here, targeting an entry around 103.50 may be an appropriate place. For a specific entry, I’ll have to keep my eye on the charts to determine the best option and time for entry.
GM
$GM is currently consolidating and getting ready for the next leg up. As investors are starting to look beyond the pandemic and traditional carmakers are throwing their hats into the EV ring in a big way, there is likely some long-term strength here for a move further up.
After a run-up a couple weeks ago, $GM and others have been falling back and consolidating. In this case, it has come back and fallen under a 423.6% retracement on my chart. But, of interest is how it uses the 34D EMA as support and a trampoline to get to the next level. So, as it consolidates and the EMAs get closer, it should be getting ready for the next hop.
I am looking at entering around 47, as that appears to be when conditions will be right. From there, a ride up to the 52 week high should be in order, if not higher. A stretch target would be the 161.8% extension around 67. But, a target around 57 (52 week high) would also be acceptable.
SDC
I am watching $SDC as it looks as if it can be an interesting play.
It is currently trading the whole channel between two strong support/resistance areas (about 16 at the top and 13.25 on the bottom). I am looking for the 21 and 34 EMAs to catch up to or cross over the 8 EMA a little before an entry here, as that looks to be when this has the energy to break on up.
With that said, I do not currently have a good target entry on this, but it is a play that is developing.
Previous Entries Still On Watchlist
SIG
$SIG looks like it may try again for another move up soon, maybe getting to 50 this time.
It is playing between a larger channel than before, between a 161.8 and 261.8 retracement. I look to get this at the bottom of the channel as the 21EMA has now caught up to the channel.
For an entry, I’m looking for and entry a little higher than 36.
SNAP
Here is what I wrote last week:
I played $SNAP for a nice win not too long ago, playing the channel. It broke above that channel and is not back down to the bottom of it (around 50.25). It is currently at the top of the channel, where it is finding resistance, so looking to see if this pops back down one more time before busting up through.
I could have gotten in on Wednesday, but I had other targets for other tickers that I was looking at. The same entry still applies, as this is likely to start moving soon.