Trading Newsletter – 12/4/2020

Quote of the Week

“The clarity of vision you maintain in your mind is directly proportional to the effectiveness of your actions.”

– John Maxwell

We can’t believe we’ve been putting out this newsletter for 10 straight weeks. It has been exhausting getting the backend of things up-and-running, but it has been well worth it. We hope that you have found value in our potential setups and plays. None of us ever expected to hit over 500 subscribers this quickly.

We have started to build a community here, on Twitter, and now on Discord. If you would like to join our Discord to talk about plays and setups with other traders, you can now do so. Here is the link to join.

We hope you and your families are having a great start to the holiday season and staying safe from the recent rise in COVID-19 cases. The United States is experiencing a major uptick in these cases in which has already surpassed the magnitude of first two waves (March/April and June/July).

Earnings Calendar

*Presented by Investing.com (check them out here)

Upcoming Economic Events

On watch for next week:

Charts, Charts, & More Charts

These charts are intended to help you to become a better trader. Don’t take every trade in this newsletter and expect to make money. Do your own due diligence and research before investing and/or trading.

ATM’s Charts

SPOT (1-hour timeframe)

Analysis: I’m bringing a new name to the table this week and this one has me excited the most. Spotify has created a beautiful bull flag with rising support after a massive $40 move 2 weeks ago. Now we will look to see continuation out of this pattern to new ATH. I expect this move to be explosive as we printed an inside day on Friday suggesting a move could come as soon as Monday. This breakout can really get moving over the $330 price level

Resistance to watch: $322.46-$324.88, $330, $335, $340-343, $350

Support to watch: $310, $315

Long Invalidations level: price action below $310

Breakout level to watch: $325, confirms over $330

AMD (1-hour timeframe)

Analysis: AMD has been a magnet towards the $100 level and I believe we can see that this week. Before we get there I do expect to see a correction towards the $92.65 fib support before we see a strong move out of this bull flag towards $100

Resistance to watch: $94-$95, $98, $100

Support to watch: $90, $92

Long Invalidations level: price action below $90

Breakout level to watch: $95

BA (15-Minute timeframe)

Analysis: excuse me while I say what some might think is an outlandish statement. BA has been a model of consistency for trading the last two weeks straight, and it’s about to be three. To end the week we had a breakout of the falling wedge while holding support to close out the session. Call flow suggests we should see another move higher towards the $250 price level this week. Over $235 this will gain momentum to take out the $240 highs.

Resistance to watch: $235-$236, $240-$241.50

Support to watch: $230-$232

Long Invalidations level: price action under $230

Breakout level to watch: $235, $240

SQ(1-Hour timeframe)

Analysis: Square looks like it’s ready to explode this week after testing the $200 support level. We have a bull flag and an Inverse head and shoulders pattern both forming with price being extremely close to breakout levels. Watch for a move over the trend line and a break of the $210 price level where I expect volume to kick in.

Resistance to watch: $210-$212, 214-215 $219-$220, $223, $225

Support to watch: $200, $206, $208

Long Invalidations level: under $200

Breakout levels to watch: $210, $215

Important reminders:

– set alerts on a brokerage app/software that you trade on

– take the breakout levels we give you (or pick a resistance that you’d want to see broken before entering your trade) and set price alerts for these levels

– Track our portfolio using an excel spreadsheet

For trades you take but can’t monitor attentively, set alerts at the support/resistance levels given to know when your position is at a cautionary level.

Airdrake’s Charts

Do not buy same week expiration on any play noted in this newsletter. All option expiration dates should be at least 2-3 weeks out at a minimum.

SNAP (30-minute timeframe)

Disclaimer: You can potentially lose all of your entry cost into this play as it’s noted as a ‘lottery play’.

Call Debit Spread (exp. 12/11/2020)

Buy the call $53

Sell the call $54

Projected cost of this lotto play as of right now is $7 and max profit is $93. Profits/losses can be taken earlier at any time before expiration with no penalty.

Analysis: Snapchat has been soaring since last earnings and many have regret selling at this point. Instead of chasing a stock like this, you should patiently wait for the pullback or pattern to develop. Following the close on Friday, the chart has now completed an inverse head & shoulder that should see further breakout to the upside. Granted this is a lotto, my intention is to keep this low cost. 

Resistance to watch: $48.27 to break all time high

Support to watch: $47.76 / $46.94 / $46.09

FISV (15-minute timeframe)

Analysis: Financial sector trending higher as tech has taken a breather from its recent run and as the market has shown the financial sector is gaining strength. Channel up here is strong and entry is ideal near the support level of $116. If stock falls below $116 that would void pattern.

Resistance to watch: $115.30 / $117.26 / $117.35

Support to watch: $116.03 /$115.71 / $115.00

REZI (1-Hour timeframe)

12/04/20 – Stock hit 52 week high

Analysis: Company announced public offering last month and now hit 52 week high just days ago. Currently presenting an inverse head & shoulder that is re-testing the neckline waiting for breakout this upcoming week. First level of resistance is showing $22.50 and then look for continuation of uptrend. 

Resistance to watch: $20.55

Support to watch: $19.90

Tomikazi’s Charts

DBX (4-hour timeframe)

DBX is one my favorite targets for a takeover in 2021 and is setup wonderful to end the year in a bullish manner. DBX recently bounced off the bottom of a huge cup formation and currently heading back to recent highs. This provides us a great entry point to go long on.  I am keeping on eye on the breakout over $20.50 and $20.80 for an entry after the correction is done. My initial profit target is $22 area.

EPD (4-hour timeframe)

I talked about EPD a few weeks back, and I still love it as a long term play.  The Elliot wave is playing out perfect and gives us a low risk high reward play for catching the final wave before a correction. A bullish start to the week is all we need for confirmation $22 is in site.  Again this is perfect for shares, long term calls, or even short term calls.

BLDP (4-hour timeframe)

BLDP is another ticker I’ve talked about in the past.  I am bringing it back, as it has one of my favorite setups. A cup and handle into a wave 5 of Elliot wave theory.  If this plays out we could see a major move to $26 by the end of the year.  Safe buying level would be a break above the green resistance line.

– The Financial Cloud Team

Disclaimer: Investing involves substantial risk. Neither TFC, the publisher nor any of their respective affiliates make any guarantee or other promise as to any results that may be obtained from using the Newsletter. While past performance may be analyzed in the Newsletter, past performance should not be considered indicative of future performance. No reader should make any investment decision without first consulting his or her own personal financial advisor and conducting his or her own research and due diligence, including carefully reviewing the prospectus and other public filings of the issuer. To the maximum extent permitted by law, the Author, the publisher, and their respective affiliates disclaim any and all liability in the event any information, commentary, analysis, opinions, advice, and/or recommendations in the Reports prove to be inaccurate, incomplete or unreliable, or result in any investment or other losses.