DOCU looks to be setting up for a 260 test. The next few days will be key to a confirmation of a breakout or just a bounce. I will add to this writeup when I have more time.
Currently swingin 2/19 245 calls since last week. I am looking to add 2/12 250 calls if we can close over the 20 SMA on the daily chart to swing into next week.
Currently swingin 2/19 245 calls since last week. I am looking to add 2/12 250 calls if we can close over the 20 SMA on the daily chart to swing into next week.
Comment:
Also, notice on the weekly chart that once DOCU found its bottom in the channel (november 9th candle) every single red candle has been followed by 2-3 weeks of bullish movement. Each time bullish movement has eclipsed the highs of the bearish candle. That would put us right at 260 (high of the most recent bearish candle) and above. Again, this is just an interesting pattern lets come back to this in two weeks and see if that is what develops.
Trade active:
Closed DOCU 2/19 245 calls 6.36 -->9. Added some 2/12 250 calls, I will cut these if we fail 242, in at $4.45.
Trade active:
DOCU looks good to me on a path back to 260. We closed over 250 this friday 2/5 and had 2.5 million in volume. On the daily chart I like how the voume has been accumulating the past 4 days with 3 strong bullish candles with a weak sell off on 2/3. I really like how DOCU broke and closed over the Daily 20 SMA that served as a strong resistance on 2/3. I think we might have caught that DOCU botttom nicely at 235 when I entered originally. Notice on the Daily chart we just bounce around inside the weekly channel that has developed.
Be wary though DOCU's chart and SPY look very similar. Since the beginning of January there has been a correlation with DOCU & SPY's rallies and sell offs. So, if SPY/SPX has a sell-off be wary that DOCU could go with it.
What I am watching for on Monday:
I am expecting DOCU to continue its momentum and possibly gap up monday and re-test 257 range early next week. Looking at the 1h chart we had strong bullish volume into close the past two trading days 2/3 & 2/4. This leads me to believe there can be continuation. We need spy to consolidate and hold at the least, if it sells off then DOCU will need to show market divergence/strength and hold its levels.
My PT for this week is 257. I will begin scaling out at that level and possibly enter some roll ups in the 260 range. Again, I still want to see some strong volume on DOCU if we really want to test 265-270 range. I wan to see $255+ price and >5 million in volume. This would definitely make me want to roll-up.
Be wary though DOCU's chart and SPY look very similar. Since the beginning of January there has been a correlation with DOCU & SPY's rallies and sell offs. So, if SPY/SPX has a sell-off be wary that DOCU could go with it.
What I am watching for on Monday:
I am expecting DOCU to continue its momentum and possibly gap up monday and re-test 257 range early next week. Looking at the 1h chart we had strong bullish volume into close the past two trading days 2/3 & 2/4. This leads me to believe there can be continuation. We need spy to consolidate and hold at the least, if it sells off then DOCU will need to show market divergence/strength and hold its levels.
My PT for this week is 257. I will begin scaling out at that level and possibly enter some roll ups in the 260 range. Again, I still want to see some strong volume on DOCU if we really want to test 265-270 range. I wan to see $255+ price and >5 million in volume. This would definitely make me want to roll-up.
Trade active:
took some profit on the DOCU 2/12 250 calls this morning when we were in 253 range. I am busy at work and trades were executed with pre-set orders. Not the prettiest Daily candle but there still was not substantial volume today. I think there were just too many plays overall in the market to see DOCU get a lot of attention. Let's see what tomorrow and Wednesday bring. Be careful when we get a bearish close on the daily and a volume greater than 2.5m.
Trade active:
DOCU ran all the way to 257 and was rejected. Going to be a tough level to get through. Docu was just hanging around the 250's this morning and looked like it might not continue higher and then it ran with SPY. Will sell remainder of docu by the end of this week if we don't break 257. The more important relevation is that if this week closes as a green candle then I think the pattern that has developed on the weekly chart as mentioned in the write-up and may be something to play more confidently next time. If SPY shows sign of weakness this week i will get out of DOCU.