Today we saw a strong bearish move in SPX, its biggest since October. Accompanying this was a strong sell off in a wide variety of sectors. This can definitely be the beginning of a bigger correction but that also means there is plenty of stocks that will be touching prices we haven't seen in a long time. The SPAC movement lost some momeuntum the past few days with the WSB short squeezes and market pandemonium that ensued. However, I think that top SPACs will have the attention turned to them sooner rather than later. BFT is one of those. I will not dive into BFT and its merger with Paysafe but leave that up to your own DD but, I will post a link below that is informative. I was put on to this specific stock by Mr. Aaron so shouts out to you.
BFT is currently on a 25% sell off from its ATHs just three days ago, reaching the 19.54 lvl. The most intriguing part about it was today's massive volume compared to the previous 4 days (20 million vs 8, 14, and 8 respectively). Looking at the short volume from today's action almost 2 million of that was short volume. Today's action showed a significant decrease in the short volume ratio which is something to be aware of as we note this 25% sell off the past few days.
For more details about BFT and its merger with Paysafe check out this link www.nasdaq.com/artic...ll-foley-2021-01-20.
Chart:
Today we had a huge gap down and subsequent sell off. I suspect many shorts taking profits as we enter levels of stronger support. We are currently sitting at a HVN at the $14.73 range. Watch to see what BFT does tomorrow and Friday (1/28 & 1/29). I am overall looking to add BFT to my portfolio because I believe Paysafe is a foundation of the payment processing sector.
4h RSI: 28.62
4h MACD: significant bearish momentum
Volume: The key for a bottom --> consolidation --> bounce here will be the volume. It will tell us when a reversal is likely. We are touching the POC on daily chart.
Plan: Depending on price action tomorrow I would like to enter the trade in the 14.40-15.27 range. If we continue to sell off I am eyeing the 14-13.65 lvl of support for another entry. Ideally we want to consolidate at this 15 lvl for the next few days. We are still early on this stock and I am eyeing this for a longer term hold.
BFT is currently on a 25% sell off from its ATHs just three days ago, reaching the 19.54 lvl. The most intriguing part about it was today's massive volume compared to the previous 4 days (20 million vs 8, 14, and 8 respectively). Looking at the short volume from today's action almost 2 million of that was short volume. Today's action showed a significant decrease in the short volume ratio which is something to be aware of as we note this 25% sell off the past few days.
For more details about BFT and its merger with Paysafe check out this link www.nasdaq.com/artic...ll-foley-2021-01-20.
Chart:
Today we had a huge gap down and subsequent sell off. I suspect many shorts taking profits as we enter levels of stronger support. We are currently sitting at a HVN at the $14.73 range. Watch to see what BFT does tomorrow and Friday (1/28 & 1/29). I am overall looking to add BFT to my portfolio because I believe Paysafe is a foundation of the payment processing sector.
4h RSI: 28.62
4h MACD: significant bearish momentum
Volume: The key for a bottom --> consolidation --> bounce here will be the volume. It will tell us when a reversal is likely. We are touching the POC on daily chart.
Plan: Depending on price action tomorrow I would like to enter the trade in the 14.40-15.27 range. If we continue to sell off I am eyeing the 14-13.65 lvl of support for another entry. Ideally we want to consolidate at this 15 lvl for the next few days. We are still early on this stock and I am eyeing this for a longer term hold.
Trade active:
Alright as expected we held the 14.92 support area and have consolidated the past two days. I like BFT to hold this level for a few days/week until the market finds its direction after the hedge fund/gamestop fiasco. With the huge market sell off 1/29 (friday) BFT held up well. We posted a spinning top candlestick friday so it will be interesting to see what happens monday and tuesday next week. This will require confirmation but is another indicator that the bearish trend is reversing. On the 4h chart the classic market indicators RSI and MACD look to be showing a change in momentum to the bull side. The scenarios I am watching are:
1. Consolidation for a few more days until volume comes in (12-20 mil range) with a close above the 16.39 lvl which would signal a larger move back up. Watch for a candlestick pattern to develop under 16.39 (triangle, flag, wedge, etc.) this will key in for another leg up. We want to follow the big money, when we see the larger volume it can confirm institutional money entering the trade. With a close above 16.39 it confirms short sellers are closing their positions.
2. Failure of 14.92 lvl would trigger a sell off to $13.86-13.65 range (where another HVN and 50SMA are). I would love another sell off to these lvls. This would be a strong area of support and I would load up more shares/calls. This is a possibility if market endures a further correction. keep an eye on overall market direction, this is why you scale into positions at strategic levels of support and scale out of positions at levels of resistance.
*I have positions in BFT from initial callout with avg share price of 15.08. I also entered July 17.5 calls. This is my starter position until I see stability in the market after Hedge funds liquidating their market positions Friday. If we fail our lvls of support here I will add 'bigly' at next levels of support. good luck all!
1. Consolidation for a few more days until volume comes in (12-20 mil range) with a close above the 16.39 lvl which would signal a larger move back up. Watch for a candlestick pattern to develop under 16.39 (triangle, flag, wedge, etc.) this will key in for another leg up. We want to follow the big money, when we see the larger volume it can confirm institutional money entering the trade. With a close above 16.39 it confirms short sellers are closing their positions.
2. Failure of 14.92 lvl would trigger a sell off to $13.86-13.65 range (where another HVN and 50SMA are). I would love another sell off to these lvls. This would be a strong area of support and I would load up more shares/calls. This is a possibility if market endures a further correction. keep an eye on overall market direction, this is why you scale into positions at strategic levels of support and scale out of positions at levels of resistance.
*I have positions in BFT from initial callout with avg share price of 15.08. I also entered July 17.5 calls. This is my starter position until I see stability in the market after Hedge funds liquidating their market positions Friday. If we fail our lvls of support here I will add 'bigly' at next levels of support. good luck all!
Comment:
watch this trendline. volume inc on daily chart and support is strong at this level. Can start to see a bounce here soon, maybe this week. if we close over 16 I will enter feb/march calls
Comment:
BFT gapping up this morning along with a lot of different stocks. SPX/QQQ look good this morning but lets see if there is continuation or hard sell off. BFT is right at the edge of its daily LVN. We just want to see a close above 16. if it closes above 16 I will be entering more calls but at february expirations.
Trade active:
Man picked up some feb $15 calls this morning at dip and it looks like we have some nice volume coming into BT at 5 million on the day so far. Really want a close on the daily chart over 15.93-16 range.
BFT blowing through lvls right now, the $15.6 lvl area was a nice pocket of volume and HVN from past few days. gapping up and then selling and holding this lvl was a key in for me that if the market rallies this can move quickly. SPX broke 3751 resistance at teh same time BFT started accumulating volume and broke out.
Current positions:
BFT shares 15.08
2/19 $15 calls
7/16 $17.5 calls
BFT blowing through lvls right now, the $15.6 lvl area was a nice pocket of volume and HVN from past few days. gapping up and then selling and holding this lvl was a key in for me that if the market rallies this can move quickly. SPX broke 3751 resistance at teh same time BFT started accumulating volume and broke out.
Current positions:
BFT shares 15.08
2/19 $15 calls
7/16 $17.5 calls
Comment:
We might open over $17 at this rate!
Comment:
BFT currently at $17.45 thanks to CNBC pumping it for us! The $17.20 lvl was a fib retracement lvl on the daily chart that was holding as strong resistance. This news broke us over it. watch $17.62-$17.76 for next resistance if we hold $17.20 tomorrow morning. If BT retests $17-$17.20 I may add some shares.
Trade active:
Man is this BFT paying out or what! I am still holding my shares and swinging 2/19 $15 calls (scaled out 1/2 position this week), 7/16 17.5 calls. Now is when the trade gets interesting. We need BFT to hold above $17.50-17.75. If it can hold above and either consolidate or run again I think we see $20. Volume on daily looks great, the bearish days are still printing low volume which is good. If we see an increase in bearish volume then look for a re-test of the pink trendline on the daily chart. If this happens load up big off that trendline. it has now held for 3 times and resulted in bounces each time. We want BFT Daily chart to continue its trend of higher highs and lower lows. This means we need 20+ by end of week and/or two weeks. GL all!
Comment:
BFT bounced hard this past Friday. It rallied right out of its downward channel, look for continuation today. I am still swinging shares and july 17.5 calls. I am looking to add some $20 calls this week. Was waiting for a trendline test to avg up some shares but I don't know if that will be happening anytime soon.