Tickers discussed: BALY, BBBY, CIEN, CRUS, CVS, EA, EXPE, MJ, RDFN, ZTO , WYNN
Trades about to Happen presents objective, low-risk, actionable swing trade ideas with the key levels identified for traders to alarm.
Earnings
Trades about to Happen
$BALY – Long Idea
Bally is beginning to make noise in the online betting world. Technically price has formed a massive bull flag. On a pop above $50 I see a measured move that projects price up into the mid $70’s. While you are alarming $50 for the breakout, go ahead and set yourself an alarm at $42.50 in case it all falls apart. There’s at least $10 of downside if this breaks down and certainly worth a trade in that scenario. I favor higher.
$BBBY – Short idea
While the bull market rages traders are fading Bed Bath and Beyond. Price fast approaching a $3 downside gap. I have $18.25 alarmed to revisit this one which may come as soon as 9.45 today. Earnings are Jan 7 so that will need to be figured in but the gap could fill even before earnings. There are options available for Dec 31 expiry which might fit the bill perfectly giving price 3 weeks to make the move. Not interested in front running it; I’m waiting for price confirmation of the breakdown.
$CIEN – long idea
Our group got long this name on the gap entry with Apr 50 calls. The accumulation of CALLS by institutional buyers bolsters my confidence in a longer term hold. As long as price holds the 200ema at $46 keeps hope alive for a full gap fill in the Spring. Earnings are tomorrow. Traders are welcomed to either get long now or wait for the earnings risk to clear before initiating a position.
$CRUS – Long Idea
On a breakout above $86 I like this long and would be looking for a move towards $100 as a first target. Please note this is a weekly chart.
$CVS Price enters a war zone
$75 has capped price for 4 years. I have no idea if price gets rejected here or breaks out, but I do know this is a critical spot. A breakout favors a $20 upside move. A rejection also favors a $20 move back to the bottom of the box. Either way, $75 is a compelling level to watch.
$EA Long Idea
Alarm $133. A breakout should carry the stock to $140.
$EXPE – Long idea
I have $130 alarmed for a potential breakout that projects a move to $145. I also have $115 alarmed for a move to the bottom of the box. THat too would be a very objective place to try a long. If price ultimately breaks $115 to the downside, there is a $10 gap to fill.
$MJ – Breakout watch
$MJ is at key Volume over price resistance on the weekly. Clearing $16 and holding it opens a path to $21. I am long Jan 16 calls. Be patient. Set your alarm just above $16 and pull the trigger when the alarm fires.
$RDFN – Breakout watch
Redfin is benefitting from a strong housing market. I am alarming $56 to get long on a breakout. THe question remains does it happen now or does price need to form a cup n handle first.? If in fact there is a pull back say into the 50ema around $47 traders could get long against the 50ema in anticipation of a move to re-test $56.
$UPWK
I like this one’s chances for a breakout and continuation higher. My alarms are set per the chart annotations
$WYNN – Hit it now if you like it
Price offering a tight long entry against $110 here. Anything above $110 keeps the door open to much higher prices.
$ZTO loses key level – Short idea
Price lost long-standing support which now becomes overhead resistance at $28.50. Not much in the way of stopping price from finding $24. 50 cents of risk for who knows how much downside. Nice R/R set up. If price reclaims $28.75, kill the trade.
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