12/4/24 Daily Plan
Not much action in the market today. This plan will focus on providing ongoing analysis of stocks requiring further evaluation, followed by a recap of existing key levels for this week, in that order.
TSLA
In yesterday's installment, the primary expectation was resistance at 360, with a breach potentially leading to a rally toward my 370 target. Recognizing the challenge of this level, I outlined a preference for a pullback to 354-355 as a safer entry point for calls. Support at 350 was highlighted as critical to sustaining the bullish setup.
TSLA opened 1.5% lower and spent the session making consecutive lower highs, ultimately basing precisely at the 350 support level.
The inability to break below 350 despite overbought conditions underscores today’s strength. Five attempts were made to breach this level, all of which failed.
Today’s sell-off can be attributed in part to legal challenges, including a Delaware judge reaffirming the nullification of Elon Musk's $56 billion compensation package. However, the uptick into the close signals that investors remain optimistic about TSLA’s future.
The market seems to view this legal decision as a corporate governance shift rather than a fundamental threat to TSLA’s operations. Sentiment suggests confidence in Musk’s leadership and the company’s long-term strategies.
For now, the focus remains on key levels. Unless there is a definitive breakdown below 350 support, I continue to favor the December 13th 370 calls as a dip entry.
Once again my LIS is 345.
AMD
Today's session for AMD was a bit of a snooze fest. The stock continued consolidating at 142, further building value at this level.
AMD didn’t see above-average volume during this phase, which is definitely a good sign for bulls. When stocks consolidate in such a clean and steady fashion, they tend to create even stronger support levels at LVN as they build up further value at their respective HVN.
While my expectations haven’t shifted much, it’s still worth noting that the 141 support level is becoming more difficult to break lower.
For tomorrow’s session, I’ll be keeping a close watch for a breakout above 143. If this happens, I’ll be looking at the December 27th calls at the 150 strike.
AMD remains a stock I’m keeping my eyes glued to in the coming weeks. The technicals are setting up for an amazing multi-day uptrend, provided the 143 resistance can be breached.
GOOGL
GOOGL mirrored AMD's performance today, exhibiting minimal movement. The stock consolidated within a tight volume profile, maintaining above the key support level at 170.5 and below the breakout point at 172.5.
The December 13th 175 calls have decreased to 1.18 from the initial 1.32, primarily due to time decay.
My LIS remains at 170, with a target of 175.
Remember patience is key, and best of luck tomorrow!
~Jay
Disclaimer: This content is for informational purposes only and is not intended as investment or trading advice. The views expressed are my personal opinions and are not guaranteed to result in profit. Investing in stocks, bonds, and futures involves significant risk, including the potential loss of all invested funds.
I am not registered as a securities broker or investment advisor with any regulatory body. It is advisable to consult a registered investment advisor or financial professional before making investment decisions. By using this newsletter, you agree to these terms.
The terms "Long", "Short," “Call”, “Put” and “LIS” in this communication are not recommendations; they highlight significant levels I find relevant. The information is my opinion and is not a solicitation to buy or sell securities. Financial market trading carries inherent risks; you should assess your financial situation and consult a financial advisor before any investment.
Past performance does not guarantee future results, and participants must acknowledge and accept responsibility for their actions in any trading activities. Screenshots provided are from Ninja Trader, Think or Swim, and/or TradingView, with which I have no affiliation.