Hey everyone!
Here is Invest Theory’s Option Watchlist for the week of 03-04-19.
DAL:
I know there is a lot going on with this chart but I wanted to point out the relationship between the stochastics and the price. First, this is the one hour chart. This means that in the next two sessions we’re liking to see the price action that we want. I am bullish on DAL here. As you can see each time the stochs are overbought they drag the price down with them and vice versa when they are oversold they increase the price. This is true for most stocks but especially when looking at DAL.
The first target we’re looking for is $49.20. Once we have crossed this we may see some resistance at our second price target of $49.70. If we are able to break through this second price target then I foresee $50.00 in the near future.
Sentiment: Bullish
Price Targets: $49.20, $49.70, $50.00
ABBV:
Historically, ABBV does a great job of trading in a specific price channel. After the big drop in price we see another channel formed. This price channel is slowly wedging though and I believe if we break this top line of $80.56 we’ll see a nice bullish run occur. As pointed out on the chart the sentiment is changing . The +DI line is crossing the ADX and this is a great sign for buyers coming into the market.
Sentiment: Bullish
Price Target: $80.80
UPS:
This is the one hour chart on UPS. As you can see there has been a range in the price its been trading in. The break of $112.00 is bullish in my opinion. We will want to look for the official breakout (candle close above the line) before entering into a position. As we can see on the DI lines the ADX is gaining strength along with the +DI line. If the -DI line continues to decrease this means there are far more buyers than sellers in the price action.
Sentiment: Bullish
Price Target: Watch for break of $112. Once confirmed PT = $113.30
MS
Liking the setup here on MS, has failed consistently to break this $42.80-$43 zone its been in. As you can see from the chart above that level used to be a support level and since it broke down it has now turned into a resistance point. I think we see it open near the resistance point on Monday and fade back down.
Sentiment: Bearish
Price Target: If $43 rejects PT is sub $42 - $41.50 Aggressive PT
AA
AA is setup very well on the 1hr chart, it has formed a bottom base at $29.55 and the stochastics are showing its working its way out of a oversold condition. I think this stock can go on a little run up over $30 in the coming day.
Sentiment: Bullish
Price Target: If $29.50s hold stock should reach $30.10 or higher
XLU
This one is probably the riskiest of the bunch although the chart is setup very well. With the market being bullish as of late I wouldn't be surprised to see this breakout of this Resistance point. You could essentially play this either way, if it breaks over $57.15 play a bullish option strategy. If it rejects $57.15 play a bearish option strategy. Regardless which way you go this stock is at a key point and whichever way it breaks it will probably make a big move.
Sentiment: Bearish
Price Target: If stock rejects $57.15 - $56.35 incoming
