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Swing Trade Ideas – April 6, 2020

Market View

Markets bouncing on positive statements from New York and Italy on the rate of the Covid virus growth. The news is positive; however it’s still early so one should not assume that the pandemic is over. Premarket many of the most beaten down stocks are bouncing such as hotels, travel and real estate.

Oil is down as Saudis and Russia have not made a deal on cutting production. Could be a buy the dip opportunity but need to see a reversal signal.

Market positioning is very positive and has gapped up premarket. SPY above 255, look for overnight high to be tested with 260 and 264 as targets. Below 255 look for 253 as a key level with 250 and 248 below.

ZSCALER

ZS is a cloud based security company with strong relative strength and has been under accumulation. Stock is poised for a breakout above 65. There is high Call open interest in the May 75’s which is a volume by price resistance level and a target for a longer term trade. ATR is 4.4, so relatively wide so to manage risk one can use an hourly chart with entry on the 50 sma.