Stocks continue to fire some warning signs across the bow, but so far the bears just can’t seem to gain any meaningful downside momentum. That said, let’s look at a few top stock trades.
Top Stock Trades for Tomorrow No. 1: Ethereum (ETH-USD)
I guess it’s our unofficial crypto week for the Top Stock Trades column. On Monday we hit Bitcoin (CCC:BTC-USD), and on Tuesday I took a look at Bitcoin Cash (CCC:BCH-USD).
Now, let’s look at Ethereum (CCC:ETH-USD).
While the first two are down slightly on the day, Ethereum ended Thursday up more than 6%. In fact, Ethereum hit an all-time high on the day.
After blasting over its prior all-time high from 2018, bulls continue to sniff for more upside. Specifically, they may have the 161.8% extension from the entire range in mind, all the way up near $2,250.
Clearing $1,900 on the day, perhaps we see some profit taking near the $2,000 mark. If that’s the case, look for continued support from the 10-day and 21-day moving averages.
Below puts the 50-day moving average in play, as well as the $1,424 breakout level — which is the former all-time high.
Top Stock Trades for Tomorrow No. 2: Amazon (AMZN)
Largely speaking, the FAANG group remains painfully sluggish. However, Amazon (NASDAQ:AMZN) may be starting to wake up.
This name has been chopping sideways for several quarters, with shares still below the July high at $3,344. Ahead of earnings, the stock was looking good as it broke out over this level.
But Amazon failed to deliver the news bulls were hoping for and it fell back below resistance as a result. The silver lining here? Amazon put in another higher low on the post-earnings dip.
I want to see if it can get over the $3,350 mark and retest the February high at $3,434. Above it could open up the high at $3,552. Obviously this is a longer term target, but if the stock really finds some momentum, perhaps the 161.8% extension and $4,000 mark are possible.
On the downside, however, I don’t want to see Amazon lose the $3,230 area, or its 50-day and 100-day moving averages.
Top Stock Trades for Tomorrow No. 3: PayPal (PYPL)
PayPal (NASDAQ:PYPL) gave quick traders an excellent opportunity on Thursday.
After a monstrous run and after not touching its 10-day moving average for 10 straight sessions, we got an excellent dip-buying opportunity this morning.
Bouncing nicely from that area now, let’s see if it’s enough to propel PayPal back up to and over $300. If it can, see if PayPal clear the 261.8% extension near $302 and tests the high near $309.
On the downside, though, a break of Thursday’s low could put the $272 to $275 area in play — as well as the 21-day moving average.
Top Trades for Tomorrow No. 4: Fastly (FSLY)
Fastly (NYSE:FSLY) is getting hammered on Thursday, falling 15.5% after reporting earnings.
The action is definitely discouraging for bulls in the short term. I don’t like the way this stock is cutting through the 200-day moving average, but it’s possible we’re seeing a slight overshoot and support will come into play shortly.
If it doesn’t, it could put the $72 to $76 area in play. Near the former is the 50-week moving average, while range support comes into play near the latter.
Like AMZN stock, this name has been rangebound for months. I don’t want to see range support fail now, but if it does, the $62 level could be on deck.
On a rebound, let’s see if FSLY stock can reclaim the 100-day moving average.
On the date of publication, Bret Kenwell held a long position in AMZN and FSLY.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.