Stocks to Watch This Week (7/19)

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Week of 7/19/21

Lots of Bearish Trends or consolidation forming from last week in many stocks. I would say go light this week and be careful if trying to catch bounces or going long

***S&P 500 (SPY)***

**Summary**: Last week was Triple Witching or Options & Contract expiration week. Now that it is over and SPY took a tumble. Let’s see if the saga continues or bulls try to turn the ship around. Inflation and the Delta Variant also has been in play as of late. Also, Friday’s action produced a Bearish Engulfing Candle. Here are some scenarios for the week:

  • Long/Calls: A bounce off 430.75 or 428 with targets of:
  • > 433, 434, 436 (Also Watch for potential rejections from these levels to go short to previous target and/or re-test before a breakout)
  • Short/Puts: A break and close below 430.75 with targets of:
  • 428425, 421 (Also Watch for potential bounces from these levels to go long to previous target and/or re-test before a breakdown)
  • Possible Consolidation between breaking level and 1st target on the Long or Short side pending which happens first.

**Indicators**:

  • MOVING AVG: Currently riding above the 72 EMA but sitting sideways on the 4 Period Variable MA = Neutral
  • RNNR Spotter: Last signal was a Sell. Look for a break of levels mentioned above for continuation of current trend and/or another confirmed buy or sell signal
  • RNNR Momentum: Still in Bullish territory but curling down in the short term. = Cautiously Bearish
  • On Balance Volume w/ Bollinger Band & EMA: Broke below its 9 & 21, but above its 72 EMA and pointing down. A break below its 72 EMA will put us in bearish territory = Cautiously Bearish

1D Chart: https://www.tradingview.com/x/pEWhG1wQ/ 

***Square (SQ)***

**Summary**: Square just had a nice multi week and appears to be cooling off with consolidation or more potential downside. So here are some scenarios for the week:

  • Long/Calls: A break and close above 238.7 with targets of:
  • > 242, 247, 250, 254, 257, 268 (Also Watch for potential rejections from these levels to go short to previous target and/or re-test before a breakout)
  • Short/Puts: A break and close below 235 with targets of:
  • > 231, 227, 224, 218, 211, 201  (Also Watch for potential bounces from these levels to go long to previous target and/or re-test before a breakdown)
  • Possible Consolidation between breaking level and 1st target on the Long or Short side pending which happens first.

**Indicators**:

  • MOVING AVG: Currently wedged between the 4 Period Variable MA (pointing down) and the 72 EMA (Sideways). Thus indicating a squeeze or consolidation. However last time this scenario appeared Square sold off. = Cautiously Bearish
  • RNNR Spotter: Last signal was Potential Downtrend and the trend looks to continue. Look for a break of levels mentioned above for continuation of current trend and/or another confirmed buy or sell signal
  • RNNR Momentum: Momentum is curling down with sellers present. = Cautiously Bearish
  • On Balance Volume w/ Bollinger Band & EMA: At a crossroads with its 9, 21, & 72 EMA and pointing up = Neutral

1D Chart: https://www.tradingview.com/x/eZZgliJz/ 

***Lemonade (LMND)***

**Summary**: Looks to be prepping for a move prior to earnings. My prediction is that we will see continued bearish pressure back to where previous buyers were and then a run up. So here are some scenarios for the week:

  • Long/Calls: A break and close above 88.2 or a bounce off 78 with targets of:
  • > 92.4, 98, 106.5, 116 (Also Watch for potential rejections from these levels to go short to previous target and/or re-test before a breakout)
  • Short/Puts: A break and close below 83.5 or rejection of 88.2 with targets of:
  • > 78, 71, 60.5 (Also Watch for potential bounces from these levels to go long to previous target and/or re-test before a breakdown)
  • Possible Consolidation between breaking level and 1st target on the Long or Short side pending which happens first.

**Indicators**:

  • MOVING AVG: Currently below the 4 Period Variable MA and the 72 EMA = Bearish
  • RNNR Spotter: Last signal was Potential Downtrend + Sell. Look for a break of levels mentioned above for continuation of current trend and/or another confirmed buy or sell signal
  • RNNR Momentum: Curled into Bearish territory and trending down. = Bearish
  • On Balance Volume w/ Bollinger Band & EMA: Below its 9, 21, & 72 EMA and pointing down. = Bearish

1D Chart: https://www.tradingview.com/x/2ejSFWth/ 

***Data Dog (DDOG)***

**Summary**: Looks to be prepping for a move prior to earnings. My prediction is that we will see continued bearish pressure back to where previous buyers were and then a run up. So here are some scenarios for the week:

  • Long/Calls: A break and close above 106 or a bounce off 102 with targets of:
  • > 107.5, 109.5, 112.5 (Also Watch for potential rejections from these levels to go short to previous target and/or re-test before a breakout)
  • Short/Puts: A break and close below 103.5 or rejection of 106 with targets of:
  • > 102, 97, 92 (Also Watch for potential bounces from these levels to go long to previous target and/or re-test before a breakdown)
  • Possible Consolidation between breaking level and 1st target on the Long or Short side pending which happens first.

**Indicators**:

  • MOVING AVG: Currently below the 4 Period Variable MA but above the 72 EMA = Cautiously Bearish
  • RNNR Spotter: Last signal was a Sell. Look for a break of levels mentioned above for continuation of current trend and/or another confirmed buy or sell signal
  • RNNR Momentum: In Bullish territory but momentum is trending down. = Cautiously Bearish
  • On Balance Volume w/ Bollinger Band & EMA: Above its 21 & 72 EMA, but below the 9 EMA and pointing up. = Cautiously Bearish

1D Chart: https://www.tradingview.com/x/VRy8KL1n/ 

***Disney (DIS)***

**Summary**: Delta Variant may be creeping up to trigger Park closures. So here are some scenarios for the week:

  • Long/Calls: A break and close above 180 or a bounce off 177.25 with targets of:
  • 181.5, 185.5, 187.5, 190.5 (Also Watch for potential rejections from these levels to go short to previous target and/or re-test before a breakout)
  • Short/Puts: A break and close below 179 or rejection of 181.5 with targets of:
  • 177.25, 175, 172.85, 169.1 (Also Watch for potential bounces from these levels to go long to previous target and/or re-test before a breakdown)
  • Possible Consolidation between breaking level and 1st target on the Long or Short side pending which happens first.

**Indicators**:

  • MOVING AVG: Currently below the 4 Period Variable MA but sitting at the 72 EMA = Cautiously Bearish
  • RNNR Spotter: Last signal was a Potential Downtrendl. Look for a break of levels mentioned above for continuation of current trend and/or another confirmed buy or sell signal
  • RNNR Momentum: In light Bullish territory but momentum is trending down. = Cautiously Bearish
  • On Balance Volume w/ Bollinger Band & EMA: Below the 9, 21 & 72 EMA and pointing down. = Bearish

1D Chart: https://www.tradingview.com/x/xyuafUTj/ 

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