4 Trade Ideas for Atlassian: Bonus Idea

• Posted by Greg Harmon
• on September 23rd, 2019

Here is your Bonus Idea with links to the full Top Ten:

Atlassian, $TEAM, has had a strong march higher from a low at the 200 day SMA in the fall of 2018. It had a few pauses along the way and then topped in August this year. The September pullback, the deepest, found support and reversed just shy of a 38.2% retracement. It is now back at the bottom of the consolidation area from the top and 50 day SMA.

The RSI is rising towards the bullish zone with the MACD crossed up and running towards positive. There is resistance at 139 and 144.50 then 146.85 and 150.25. Support lower comes at 135.50 and 131.35 followed by 128.35 and 126. The company is expected to report earnings next on October 16th.

The September 27 options chain shows the biggest open interest at the 130 put strike and then the 144 calls. The October options, covering the earnings report, show the biggest open interest at the 125 put and then the 150 call. There is good size at the 130 put and 140 call as well. November open interest is biggest at the 130 put.

Atlassian, Ticker: $TEAM

Trade Idea 1: Buy the stock on a move over 139 with a stop at 135.

Trade Idea 2: Buy the stock on a move over 139 and add an October 135/125 Put Spread ($3.85) while selling the October 150 Call ($2.35).

Trade Idea 3: Buy the October 125/140/145 Call Spread Risk Reversal for a 40 cent credit.

Trade Idea 4: Buy the October/November 150 Call Calendar ($2.55) and sell the October 125 Put ($2.85).

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After reviewing over 1,000 charts, I have found some good setups for the week.  These were selected and should be viewed in the context of the broad Market Macro picture reviewed Friday which with the September FOMC and Quadruple Witching behind, saw equity markets held up well until more trade issues hit Friday. Even so, the declines were minor as the index ETF’s hold near their all-time highs.

Elsewhere look for Gold to stall at 1500 while Crude Oil consolidates. The US Dollar Index is still drifting to the upside while US Treasuries bounced in their downtrend. The Shanghai Composite is consolidating the short term move higher with Emerging Markets stalling in their short term rise.

Volatility looks to remain very low but has stopped dropping changing the bias to neutral for the equity index ETF’s SPY, IWM and QQQ. The SPY and QQQ both continue to hold near their all-time highs with strong longer term charts while the IWM is holding at the top of the 2019 wide consolidation zone. Use this information as you prepare for the coming week and trad’em well.

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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