Tuesday kicked off the first day of trading this week, as the indices chopped around the flat mark. That said, let’s look at a few top stock trades as we start this holiday-shortened trading week.
Top Stock Trades for Tomorrow No. 1: Bitcoin (BTC-USD)
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Bitcoin (CCC:BTC-USD) finally did it: It cleared our $46,000 target and hit $50,000. The cryptocurrency went on a stellar run, more than doubling from its prior high near $20,000 to its highs earlier this year around $42,000.
After that though, bitcoin needed some time to rest as the price slowly pulled back for most of January. Near the end of the month though, bitcoin prices perked up, clearing downtrend resistance (blue line) after a tag of its 50-day moving average.
Bitcoin was slowly grinding higher before news of Tesla (NASDAQ:TSLA) allocating some of its cash funds to bitcoin ignited the price higher. That ultimately put the 461.8% extension from the longer-term range in play, as well as the 161.8% extension of the most recent range.
From here, we need to see if bitcoin can get above and stay above $50,000. If it can, it puts the two-times range extension in play near $54,950, followed by the 261.8% extension at nearly $63,000.
On the downside, however, let’s look for the 10-day moving average to continue acting as support. Below, and bitcoin may need more time to digest the recent rally.
Top Stock Trades for Tomorrow No. 2: Boeing (BA)
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Boeing (NYSE:BA) has been behaving better lately, but isn’t out of the woods quite yet.
The stock continues to struggle with its 50-day moving average, as well as several of its VWAP measures. It seems like one level after another is hanging over Boeing at the moment.
What do I mean by that? Well, if shares can push through the three measures outlined above, it has the weekly-up trigger sitting near $217.50. If it can clear that, it has the 50% retracement at $219.50.
If it can clear all of these marks though, that’s when the upside really opens up. Specifically, it will put the June high in play at $234.20, followed by a potential test of the December high near $244. Above that could put the 61.8% retracement on the table, near $250.
On the downside, though, keep an eye on the 10-day moving average. A break could put a move back toward $200 on the table.
Top Stock Trades for Tomorrow No. 3: Shopify (SHOP)
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Shopify (NYSE:SHOP) has been scorching higher lately, as it consolidates at its all-time highs. I love this bull-flag action up here. Earnings will make it interesting, though.
Let’s keep it simple. If the report is strong but triggers a dip, let’s see if we get a buyable dip near the 10-day moving average and 161.8% extension. A break of this area could put prior resistance on the table near $1,230 to $1,250.
On the upside, however, a move through the current all-time high could set the stage for a rally up to the 261.8% extension near $1,640.
Top Trades for Tomorrow No. 4: Ondas Holdings (ONDS)
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Ondas Holdings (NASDAQ:ONDS) is a small one and not one that many are likely familiar with yet.
This name is a bit more speculative, but its big spike in January brought it to several traders’ attention. The stock traded in a tight consolidation for about a month after that, before erupting higher on Tuesday.
The stock cleared last month’s high in the process, as well as resistance near $14. The key now will be holding up over these two marks.
Losing $14.90 puts $14 back on the table. Below the latter, and its VWAP measure could be on the table, as well as its prior trading range.
On the upside, though, let’s see if ONDS stock can take out the current high — now near $16. Above puts the 161.8% extension in play near $17.
On the date of publication, Bret Kenwell held a long position in BA
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
