Market Watchlist 6/7 - 6/11
Hello everyone and welcome to another weekly watchlist by True Trade !
As usual, let's start with the bigger picture market trend, which is still, a up trend. Spy , /ES held the key levels highlighted in last week post (https://www.truetradellc.com/post/market-watchlist-6-1-6-4) , we remained over that 4176 on /ES and continued the up grind. For the upcoming week, continue to look for buys on pullbacks, and until the market gives you a reason otherwise, continue to be long. As always let the market decide which way it wants to go, and you follow it along, don't try to time a reversal, just play the trend. As the week goes on updates will be provided via IG stories.
Last week went well, with ABNB giving probably the best trade of the week, but even the others worked well, such as the 316+ buy on ZM and AVGO 1st 476 short. Quite a few of these are still ranging within their key levels, so look out for moves next week.
Earnings season has begun to die down, but there is still a few left, and with those a few nice setups for the upcoming week.
1. CHEWY ($CHWY)
$CHWY - Daily until 6/7
With earnings coming up this week , CHWY should offer some great movement for trading. Another pick with a high short float, if we can start holding back over 77/79 we can try for 84, if not 88, which was pretty solid resistance on the breakdown. Buyers have recently seemed to be holding over at 73 , let's see if that continues into earnings.
88 - On the upside, 88 was a key sell area, had multi week hold under zone , while trying to break it , but could not get the energy needed to get over, would definitely expect sellers to step in on te first test back there, and if not early at 83.82.
77.52/79.72 - First area where we should see resistance, already touched off that 77.5 a few times, had like a 2 day base there before breaking down lower.
72.93- Looks to be the most recent support, 6 day hold over the level, buyers are continuing to step in , and this can be used as the intermediate long/short level.
67.74 - Had a multiday base here as well before getting the breakup towards 77, would also eye this level for a buy down into high 65.
2. GAMESTOP ($GME)
$GME - DAILY UNTIL 6/4
The meme stock has made it to the list. I usually wouldn't throw this up here, but with earnings coming up this week, is there actually room for GME to go? Earnings could increase volume and give tradable plays, so here are a few areas you want to keep your eye on.
277.52 - Looks to be the daily resistance zone , basically from around 277-290 selles have shown life. To break thru this we probably would need some sideways consolidation to build momentum for a break thru. Until then , can look for weakness for shorts.
229 - Key breakup support, gapped up and has held buyers over for over a week. Had an attempt to break under on 5/28 , but gapped back over to start the next day.
168.83 / 180.67 - 168 was the pre breakup base location , while 180 was where we broke out from. Due to how quickly GME runs or drops, this area is one I would eye for buyers on a drop, as on a normal day buyers should step-in off the base or breakup location.
3. AMC ($AMC)
$AMC - DAILY UNTIL 6/4
AMC , another short squeeze candidate on the list. Can AMC squeeze more? In short no one knows, all we do know is there has been increased volume, and with increased volume comes extra trade opportunities. Just be careful if your trading options haha. There are quite a few "extra levels" on amc , some aren't as well established yet to it it hitting all time highs, so heres a few to watch. A clear buy and sell area for the most part.
67/69 - Sellers have stepped in ard off this area, if it wants to break, it probably takes some time , would need to consolidate under for a bit to build energy to break to the upside.
37.52 - The clear breakup candle, and where buyers have already shown to step in , giving a $20+ bounce. Keep this area in mind again for at least an intraday long trade.
4. DOCUSIGN ($DOCU)
$DOCU - DAILY UNTIL 6/4
Docu had one hell of a ripper post earnings, and it's one we caught if you were in the trading group 👀👀👀. With the kind of move we had last week, I would likely expect contiued movement his week. We had some basing and holding on the move up at the 224 and 212 levels, but didn't really show much sell pressure. We moved right into the breakdown area, which was 234-5, so would definitely look for at least an intraday short here off weakness.
243.6 - This area also had a multiday hold under before pushing lower back in Feb. If we get over 235 - wouldn't look for another short until like 243-245. Also an upside price target.
234.44 - The last breakdown/sell area, 9/10 times will see sellers step in here again, and off the type of move we saw to end last week, we could see a pullback to at least 215. If buyers break over , we can get the next run towards 243.
224.03 - Was a key level on 6/4 as we held this area to build more momentum to the upside, and this is likely where we see a bounce if we sell early next week. Holding here can start giving momentum for a consolidation break over 235. Getting under here, can look for buyers off 212/251, with 212 being the better bet.
5. SNOW ($SNOW)
$SNOW - daily until 6/4
Had a multiday consolidation over the last breakout area, which was 236. Holding over 236 and then ideally 240 has been giving snow the potential energy it needs to break out towards 251 if not 273. There's now much of a short float on this one, just over 5%, but even with that its quite a way from its ath's, so it definitely has room to run.
250.96 - Breakdown area would eye this as a sell target for longs, maybe an intraday short play, but prefer longs over 236/240 zone.
245.15 - The close of the breakup candle, and since then we have had 5 days trade within the range of that breakup. Getting over and holding 245 would complete the "breakout" if snow is to retest 250 , look for a daly close and hold over to give signal for next leg up.
236.53 - Lower daily hold for the current buy zone, was the pivot high before breaking over 240, and where buyers have shown life and bds. Look to keep holding 236, to keep the "bull flag" thesis vald, break under would be considered a failure at resistance and can send us back into 230. Holding 240 consistently is even better, as this was where we consolidated under for months to head lower.
A few Notable ones:
$ZM - Held the 316 level all last week, and closed just at 340, if we break we can get a squeeze, if we reject, we probably base for a few days before looking to head back to the upside.
$ABNB - Caught upside squeeze last week, but looks like more is in store. Key level to hold is over 144 for bulls, while breaking and holding 151. can set up ABnB for its next squeeze towards 156 and 162.
As always list from past weeks still have valid levels, so go check them out at https://www.truetradellc.com/blog/categories/watchlists
That's it for this week's list, if you have any questions don't hesitate to contact us or drop them below. These are just a few stocks im keeping my eye on this week, and as always, do your own due diligence and realize that their will always be risks associated with trading !
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