Weekly Review 30 Apr – 4 May 2018 (Stock, Gold, Crude Oil markets) & Bonus Stock NFLX

S&P 500 futures is holding up nicely at 50 weeks MA but slightly below 10 weeks moving average (MA). The suggestion is still remain the same as last week call. Options trader can continue to hold the position while stock trader should wait patiently for either side of the symmetrical triangle to break before entering the market. Stock trader should continue to stay in the sideline while waiting for a more obvious trend to be formed.

Screen Shot 2018-05-06 at 8.35.31 AM

Crude oil futures ended at $69.79 with volume slightly higher than the previous week. Do ride the bullish momentum and sit tight with the stop loss. Do refer my suggestion here.

Screen Shot 2018-05-06 at 8.36.15 AM

Gold futures ended at $1316. It is holding well at 50 Weeks EMA and the chances of challenging resistance at $1366 is high. I am still bullish on Gold unless it breaks below 200 weekly MA and the lower trending up line (orange line in the screenshot)

Suggestion: While there are multiple ways to trade this setup, I am still prone to wait for the gold price to break $1366 before setting up a bullish trade.

Screen Shot 2018-05-06 at 8.36.33 AM

Bonus Stock pick – NFLX

NFLX reported stellar earning on 16 Apr and the stock price gapped up decisively post earning announcement. The stock built up a nice base without much volume spike during the down days indicated that the institution investors are still holding the stocks well. A nice bullish reversal pattern was formed on 25 Apr after the stock hit the 50 days MA with volume spike.

Suggestion

  1. Conservative trader can buy to open a bull put credit spread at $300-$295 level.
  2. Moderate trader can long as close to $306 with stop loss set at around $295. Target profit can set at $367 (Fibonacci projection at 161%).
  3. Aggressive trader can buy $320 June 2018 Call options without stop loss (means willing to loss the entire premium paid) and profit target 100%-300% of the premium paid.

Screen Shot 2018-05-06 at 8.37.51 AM

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

w

Connecting to %s