Pre-market Live and Options Picks for 03 30 21

Good morning, and happy Tuesday, traders. This is Jake from Let’s get right into the charts. I’m going to keep this pre-market analysis really short and sweet because I want us to stay green and profitable today.

GLD, the gold, gapped down today. Luckily, we have those calls that go out pretty far, I think all the way out to July. We’ve got a little bit of a gap down, 1.63%. It’s a big gap down. Hopefully, that position isn’t hurting too bad. We’ve got a lot of time, and it’s coming right into the support.

For a day trade, today, I’m looking at DISCA, Discovery. Just multiple days on the downside, so it’s got to get a bounce. What is it doing? If I go out to the six month or to the year-to-date, you can just see from 78.14 to 34. Basically, we’ve been cut over in half on the daily, totally oversold conditions here [01:06], and also even on the weekly. No, I guess we haven’t really finished selling to the downside on the weekly. On the daily, it looks like a good area for a bounce. I might take this [01:22] for a day trade.

I was looking at DXC this morning. I’m not really sure what do, but nice gap up this morning. It’s at 29.43. We’ve got some overhead resistance coming up. I’ve charted this [01:54] before. I actually like this stock to trade, but you never know if the markets are going to dump, if they’re going to pump. You have to just keep an eye on the QQQs, the NASDAQ, the SPY.

I’m going to switch from the five to the ten-minute time frame just so you can see a little better. We could get a nice push. What I like to do is I wait for a dip buy, or I like to buy this [02:30] of a break of this [02:32] 30. That seems to be resistance. You can see how it couldn’t get past that pre-market. Now, it’s back down here [02:38] to these highs if you will. I’ll go to the options chain. I’ll look at the volume. Then I’ll look at the open interest just to see where the major areas of support and resistance are.

Right now, I can see that there’s a lot of open interest in the 29 and in the 30. It’s already at the 29, so I’m going to be looking at the 30 strike price, April 21st, which is 17 days, a little over two weeks. I go back to the charts. Then I look. I draw my lines, support, resistance, channels. Then I just wait for a dip buy opportunity and go along with the 30-strike price. I’ll look at the five-minute time frame. Sometimes this is a good time to get in.

Usually, I like to buy off of the 50-day simple moving average and then see a push to the 30. I probably will get rid of it at 30, or I’ll be watching the stochastic and the RSI to peak out. I might not sell right at 30, but it you’re 100% up. These [03:44] are April expirations, so they don’t expire for two weeks. You’re not going to get a crazy move on these [03:52] in returns. It could be something worth holding. If I go out to the six month, if we break this area right up here [04:02], this is a big area right here [04:04] at the 29.30. We could see a continuation into higher prices, maybe even all the way up to this 35, 37.50 area. You just have to watch the daily time frame on the RSI and the stochastic.

That’s all I’ve got for you today. Let’s have a wonderful Tuesday and have a good, green day. God bless, be great, and I’ll see you on the charts.

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Pre-market Live and Options Picks for 03 29 21