Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.

8 Technical Levels From Tuesday's PreMarket Prep

NFLX, AA, CAT, CMG, DD, EAT, KO, MCD, MMM, TMUS

Did you miss today's PreMarket Prep? Here are some of the highlights from the show.

Highlights And Key Technical Levels

The following are some of the stocks discussed by hosts Joel Elconin and Dennis Dick on the show.

McDonald's Corporation (NYSE: MCD) blew away the all-time high from Monday after a strong earnings beat. "I wouldn't be shorting the thing, but if I was an institution and I was long a couple million shares, I’d have some offers out today," Elconin said.

The Coca-Cola Co (NYSE: KO) traded flat Tuesday morning following its earnings report. "$44 if it was to go into rally mode is a huge number," Dick said. "If you go out to the weekly's and you go further that's where there was some size looming before...but I don't know if we'll even get up there." Elconin noted the stock has major support at a series of lows from $42.47–$42.56 from April 1–12.

Caterpillar Inc. (NYSE: CAT) was one of Tuesday's hottest stocks. "When you've already traded 273,000 shares at 8:00 in the morning, you’re going to chew through everything in the book," said Dick, noting the stock is back at levels not seen since late 2014.

3M Co (NYSE: MMM) topped out at a premarket high of $199.50 after its earnings beat, but opened back down at $193. Elconin said to watch the all-time high from Monday, $194.45, and to wait until it fills the gap from $191.

E I Du Pont De Nemours And Co (NYSE: DD) broke through major resistance to $82.37 in morning trading, but $82 remains a key level. The stock is in full breakout mode.

T-Mobile US Inc (NASDAQ: TMUS) is another stock that's trading at all-time highs, breaking through Monday's record of $65.97. Off the open it found support just ahead of Monday’s low of $64.97, only reaching 65.26.

Alcoa Corp (NYSE: AA) is trying to get to the major resistance from at $36 from March 16. It has a big gap on the downside from the current lows of $34.24–$34.44.

Brinker International, Inc. (NYSE: EAT) has found support just under the April 19 low at $42.97, but is still in no-man's land. "I'm not buying EAT among this $46 level until Isee it take it out," Elconin said.

Chahine's Charts And Focus

Options expert Nic Chahine, author of "Create Income With Options Spreads on Marketfy," joined the show to discuss his favorite charts and what he's looking at.

"What I look at is the open interest on top of everything else, and the open interest tells me the bulls have a lot of support" he said. "[The market] has no reason to fall. To consistently have downside pressure you need a game changer. You need a headline to come out wrong."

Chipotle Mexican Grill, Inc. (NYSE: CMG) has had a good run, Chahine noted in a weekly chart, but he also noted that it's entered a zone that's been pivotal.

"And here it is again in this zone. So for me to chase it from here I have to see it really tell me that it can clear the zone no problem this time. Otherwise I'd either try to do a debit put spread near the money with time on the clock, May or longer, or wait for it to fall a little bit then do a credit put spread behind this beautiful new story that everyone came up with."

Netflix, Inc. (NASDAQ: NFLX) is in breakout mode following the news that they've licensed some content to Netflix. Chahine noted in a chart that the stock's range had been getting narrower and narrower before this breakout. Click here to listen to the full segment with Chahine.

Upcoming: On Wednesday's Show

Wedneday we'll be joined Kirk Du Plessis, the founder and head trader at Option Alpha.

How To Listen And Watch

PreMarket Prep is a daily trading ideas show with a focus on pre-market volatility and technical setups. You can listen live and chat with our hosts, guests and listeners every morning from 8–9 a.m. ET here or on YouTube Live. You can listen to the podcast on iTunes, Soundcloud and Stitcher. The full recording of today's show is available below.



Get the latest news and updates from Stockhouse on social media

Follow STOCKHOUSE Today