Pandas Weekly Newsletter 3/5
Every week we review everything you need to know about the stock market for the week ahead as an active or passive trader.
Market Big Picture & Long-Term Technicals
In last weeks newsletter we discussed the backtest of the major weekly breakout trend line from January. This past week we backtested it again, dipped below the 200dma, then proceeded to bounce and reclaim 4015 key level. This is a very bullish series of technical events from a larger timeframe. Heading into this week, our big picture remains the same until invalidated with a weekly close below that trend line. Our main targets from the weekly breakout in Jan are 4280, 4325. With 5 weeks of constructive price action, we’ve now built up a strong base to push higher from. Over the next couple weeks/months we anticipate these targets back with more positive seasonality. This thesis would be invalided below 3900.
Economic Calendar & Earnings
source: (investing.com)
Notable Earnings: MDB 0.00%↑ JD 0.00%↑ DOCU 0.00%↑ ULTA 0.00%↑
source: earningswhispers.com
Near Term Outlook & Trade Plan
Last week we saw the 200dma fail, 3950 key support lost, and a quick reclaim of both. Then closing the week above a key technical level at 4017. This sets us up for more upside targeting 4100 next. We may see some basing/chop between 4017-4050 before making another leg higher, this defines our chop zone. With last week behind us and more positive seasonality ahead, we’re looking for more constructive price action from here. Back below 4000 can create more vulnerability and a retest of 3950/3930 is likely not to hold again.
SPX 4050 targets 4100, 4120
SPX 4017-4050 = chop zone
SPX 4018 targets 3990, 3972
Pandas Weekly Watchlist
Our Favorite Trade Setup - NVDA over 239
Contract: NVDA 3/10 245c
Targets: 242.50, 247, 252.59
Stop: 236
Notes: NVDA recently gapped up from 207 level to 230-239 following earnings. We’ve had a little over a week now of consolidation and we closed last week right at resistance at 239. A break over this level and its possible to see a move to 252.59. It’s currently just over 239 in after hours.
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