Watchlist 2023-05-25 $MU $SOUN $ZIM $ELF $PATH

25 thg 5, 2023

SPY breaking out of the tight range after failing to get below 410. NVDA (the fifth most valuable company on wall street) posted an incredible guidance and beat an already bold earnings prediction by 50% this quarter. Key levels for SPY are 410 support and 419 resistance.

For further confirmation of a trend day, watch for:
ADD pinned near +\-2000
VVOLD ratio over +/- 3
TICK cumulating past 0 wicking to +/-900

Chips:
Today's challenger will be participating in a chips play that isn't extended. Looking for dips into key levels, and BO's from consolidations where there is at least 2 touches of a level.

MU - may be the least extended in the sector but that doesn't necessarily make it a good trade. MU is still breaking out of the range from 64 with room to the 74 level and is JUST over the 68.50 pivot, which make is an attractive setup. There is a good change there could be some profit taking off the open off NVDA, so as others have a long way to fall, hopefully MU will find support early if that scenario plays out.

SOUN - range BO with a cup and handle on the daily, seeing strength in AI names this morning with NVDA's strong forecast. Long over 3.35 area.

ZIM - Day 4 continuation long. The tape change over the last two days after the capitation bottom. Showing extremely strength the last two days. Best trade has been waiting for a sequential pullback for an excellent RR setup,. Looking for an early BO of the 14.60 level form the last two days OR, a pullback to that level if it breaks early on.
Support 14.20
Resistance 14.60
Inflection

ELF - Elf Beauty stock rallies 11% after company's sales jump nearly 80%, JPM raises PT to 110. Key level is 97 for a BO, need consolidation first before I'd be willing to take a BO as it's been up for an entire year and gapping 3.8 ATRs. Willing to take this as a short too if there is a strong rejection off the 97 level on high vol.
Support 95.00
Resistance 97.00
Inflection


PATH - AI upstart UiPath's stock is down 2.5 ATRs on soft revenue guidance. This is an interesting play as AI is hot across the board today except here. So If the day is strong, and PATH catches a bid, there is potential for some serious upside. However, if today is weak, this could be a relatively weak name. Waiting for better levels and price action to form.

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