Unusual Due Diligence: 8/8/21

Sunday; August 8th, 2021 - Hello everybody! Welcome to Unusual Due Diligence, a segment that covers my general end-of-day view of unusual options caught on Unusual Whales, a powerful tool that helps you analyze the live options flow and catch large trades that have the power to move the markets. We’ll take a look at my custom alert notifications and do some analysis on a few trades that catch my eye and discuss the opportunities and risks amongst each. I recently began a small account challenge, which I’ll be consistently updating you on through weekly Newsletters that go over the trades I took, why I took them, and what I’m expecting from them. Make sure you subscribe to stay updated on the market and improve your trading on a day-to-day basis! It’s completely free!

Remember: This is NOT financial advice and nothing I say or do should be replicated without doing proper due diligence. Please only invest whatever you are capable of and willing to lose.

This Newsletter is just going to be a simple Watchlist I’ve put together going over exactly what I’ll be looking for over the week and why. There were some technical difficulties I was experiencing over the week with my Alerts, so this past trading period’s been extremely slow for me. I think I’ve fixed everything, so I’m hoping this week will be much more action-packed. It was nothing major, none of my alerts were coming through, so I had to try and figure out what was happening. No, I never figured it out, but all of them suddenly came in all at once over the weekend, so I’ve literally spent the last ten hours doing DD… GUHHH!!

The first ticker I have my eyes on is $PLTR, which I spotted climbing in what looks to be a Bearish Pennant on the hourly timeframe, which is when the market makes a substantial move downward, consolidates, and then continues its move to the downside. Currently, the price is staggering on the perimeter of the triangle, and there’s a possibility we could see a break of structure at the market open. If we do, there are a few major lines of resistance and support I drew out on the daily timeframes that can help guide us to our target areas. These major lines of resistance are $24.23 & $27.57, where the major lines of support are at $14.54, $17.88, & $21.11. If we do see a break of structure, we need high volume to push us through the resistance. If there isn’t high enough volume, there’s a chance we can see it test the first support level, and possibly even make a rejection to the upside. What we’re looking for are two or more tests and a strong close below that first line of support. If it breaks, the waters ahead are completely clear. Our first target will be a minor line of support that is not drawn at the $19.75 area. If we do see a break of that minor line of support, our next price target will be the major line of support at $17.88 where the previous lowest low on the daily hit and bounced off at. Of course, this can also continue on with consolidation over the next five days, so be sure to keep an eye on how it breaks.


Next up on the list is going to be $CGC. Here, we have… Well, I don’t really know what we have right here. I’m slightly confused at whether or not this is just an extremely bad Rising Wedge triangle pattern or just a descending channel I’ve spotted on the hourly chart. However, I do know that I spot some NASTY divergence on the RSI when comparing it to that doodle channel. As you can see, the candlesticks are descending downwards while the RSI is climbing up - and it’s quite substantial too. When zooming out on the daily candlesticks, we can actually see that the RSI is right at the oversold mark, which means there’s big room for some upside momentum. We can see this channel continue downwards for days, or we can see some drastic movements to the upside. The major lines of support are at $13.21, $15.53, & $18.34 while the major lines of resistance are at $21.76, $24.08, & $27.02. If we do break the structure to the upside, I think the door is open for a price target of 21.76, where we can then possibly see a good test. We’ll be looking for multiple tests and a continuation to the upside, and we’ll be pulling out at the sign of rejection. If we do see a continuation, we’ll probably see some consolidation at a minor point of resistance at $22.80 before continuing onto our major line of resistance at $24.08.


Alright, this next one up is going to be $NIO. I was actually watching this a bit last week, and I noticed a good climbing breakout of this descending channel on the hourly chart. Currently, we’re seeing a strong three-part test of the $46.84 line of major resistance, which we’ll be looking for a break of come Monday at the market open or throughout the rest of the day. If we see rejection, we’ll have to re-analyze and find a good entry point in the near future. But, if we do see a break of structure, things are looking extremely pretty with this one. In the short term, we’re looking at a price target of $50, where we’ll then see a possible test on a minor line of resistance. Once that breaks, we can see it move up to $54 or $55 before giving us some more consolidation. If we do see some major moves to the upside with this and $NIO is able to reach $55 over the next couple of weeks, we can actually be gearing up for some major price targets of $63 or $64, but we’re jumping a little ahead of ourselves here. With this, I think it’s best to take profit when you see profit, as you can always re-enter into another position for a long-term play.

Alright. I told myself there would be no tears, not here in front of all my friends. I can’t help it. It’s fucking gorgeous. I spotted this stupidity on the WEEKLY candlestick chart. On the daily candlesticks, it looks massive. Look at this breakout of the Falling Wedge triangle pattern - JUICY!!!! It is currently giving us a hard test right alongside that $697.37 newly-found line of major support. As long as she doesn’t give us a rejection, we’re in for a treat! We could be seeing new highs all the way up in the four digits when looking at the long-term. Currently, our lines of major support are at $565.41, $636.98, & $697.37 while our lines of major resistance are at $764.96, $830.02, & $886.42. Above that, tendies. Straight tendies. Due to this is play being on the daily chart, it may take up until next week to get a clear picture, but we could be seeing a break of structure as soon as this week, so really keep an eye on this one! Our first price target is going to be $764.96. Again, I recommend spreading out the trades and taking profit where profit is given. After pulling out at $764.96, re-enter once we see those re-tests and the break of structure to the upside. If we see a rejection at any point, we always pull out and take profits where we can. Stop losses are ALWAYS set to -30% to -35% max.


Being somebody who works in the Cannabis industry, I feel like it’s my duty to be Bullish on Cannabis stocks, but man… $SNDL has truly seen better days. These guys use to be worth as much as $13 a share, which was at their original opening distribution price, and that was only at the beginning of September in 2020. These guys have been downgraded to the title of a penny stock within their first year on the market, such misery. Well, here we have a triangle on the daily candlesticks. Which way is it going? I don’t know, but probably down. We have our lines of major support set at $0.435 & $0.85 while our lines of major resistance are set at $1.24 & $1.592. Let me tell you, these guys are one bad Earning’s Call away from hitting a negative share price. This triangle we see here, this could be the one that does it. We literally only have one line of support it can fall to before breaking and hitting the NASDAQ Wall of Shame. I mean, given how low this stock really is could just mean that there’s also massive room for upside momentum, so who knows. Really, just keep your eye on that break of structure. If we do see it break either up or down, we will see a test at the nearest line of support or resistance. Watch for multiple tests and enter with an acceptance, avoid with a rejection.


This, this is the heartbeat of $FSR. Look at that massive consolidation between $9.53 & $24.02, this thing looks like it’s alive, and I think it is. At the right, I spotted a nice-looking Falling Wedge triangle pattern on the daily candlesticks, and it’s currently in the accumulation phase. With the falling wedge, we’re looking for strong accumulation to fuel a further break & push of momentum to the upside. Currently, we’re getting towards that tip, and we can see a break of structure as soon as this week if we’re lucky. We’ll most likely see some tests at the $17.16 line of major resistance, where we can then expect a further push to as high as a $20 share price. The $19.17 line of resistance seems to be a major turning point for the rest of the chart, so be sure to pull out of a position beforehand and only re-enter if you see a further break of structure to the upside.

We only have a few more, and this next one is for $SPCE. This one was spotted on the hourly chart, and we see another Falling Wedge triangle pattern, which is ultimately Bullish. Just recently, we had the break of structure we were looking for, and we’ve condensed into a smaller triangle pattern on a smaller timeframe. If we break down, we’re getting a rejection, but if we break upwards, we’re getting accepted into the heavenly gates. If we get accepted, we’ll see it break through our $34.87 line of resistance and possibly test again before continuing upwards. Our first target will be $38.86, and we’ll probably see some accumulation at the $37 mark. Our RSI is looking a bit high, so we may see a bunch of consolidation once we hit $38.86.


This is $ZNGA. What happened to $ZNGA, you ask? Earnings. This is why I don’t like them. However, we do have a massive gap that has now appeared! Always remember, charts do not like gaps. They must be filled in over time, so we can expect this chart to make some sort of movement to the upside in the coming week or two. The flow was showing tons of selling on Friday, so I’m not too confident in a position just yet, but pay attention to the movements at the market open Monday morning. Will people keep selling, or will they start buying the dip? I’m betting on a big BTFD move, so pay attention to this one, as it can be a pretty decent payout if we catch a good entry. For me, I’ll be looking for a break of the $8.29 resistance before testing a couple of times. Once I see that break of structure to the upside after the tests, my price target will be the $9.73 line of major resistance. If we see rejection, we’ll have to watch how far it goes before hitting the bottom.

We’re finally at the second-to-last, and it’s $SOFI. When we zoom all the way out on the daily, we can see the period of consolidation we’re in. On a hutch, I drew a line from the two highs down to form a triangle pattern on a massive scale. When looking at the period of consolidation we’re in, we can see that we’re at the very bottom. The flow has been showing heavy buying power, and I think it’s safe to say that over the next couple of weeks, we’re looking at some Bullish momentum all the way up to the $21.30 line of major resistance. While we haven’t broken out of any structure, we can see that we’re at the bottom of a large consolidation channel, which is always a favorable play in my honest opinion. I’ll be placing an 8/20 $22 Call tomorrow at the market open, as I have no reason to believe it will make any further moves to the downside. Keep watch of it and always do your own due diligence, do not follow my trade blindly. There is always a chance I will be wrong, as the market is unpredictable in its movements.


For the very last stock on our watchlist, we have $HL. Here, we have a climbing channel to the upside which was spotted on the daily candlesticks. Just like the previous, this is not necessarily a breakout play, yet. Right now, we are at rock bottom in our channel, and we have no confirmation that it will continue its move to the upside. There is a chance that at the opening bell, this thing can sell off and break structure to the downside, but there’s also a chance we can see this bounce and begin to push back up within the channel. If we do get the confirmation and see it continue its climb to the upside, we can expect a starting price target of $7.69. When we look at the history, we see that there were times it never fully went up to the top of the channel, so we want to take profits where we can find them. If we do see a continuation beyond the $7.69 line of major resistance, we can possibly see a further push all the way to our $9.76 line of major resistance, which would then be a great time to pull out and buy into some Puts at the rejection. Keep an eye on the movements, the flow is looking heavily Bullish!

Alright, Apes! That is all for today! I hope you enjoyed this segment of Unusual Due Diligence, please be sure to stick around for more coming soon! I kept this one rather simple and focused specifically on technical analysis. Make sure you subscribe, as I’ll be continuously posting educational content centered around investing through this Newsletter!

I’m constantly looking for ways to improve my segments and make sure I’m giving out the most beneficial information possible. Please leave a comment and let me know how I can improve! I’d love to hear of different types of Analytics you’d like to see on a daily basis, things I’m missing, or even things that I should take out. Thank you, please let me know!

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