It has been a very tight trading range for the past few sessions. The assumption has been that a busy earnings week and the Federal Reserve meeting would shake things up. So far, that hasn’t been the case, but there’s still a lot of week left. With all of that in mind, let’s look at a few top stock trades going forward.
Top Stock Trades for Tomorrow No. 1: Ethereum (ETH-USD)
Click to Enlarge
While cryptocurrencies continue to struggle, Ethereum (CCC:ETH-USD) has actually been trading quite well.
In fact, it hit new all-time highs on Wednesday. That said, Ethereum is becoming the relative strength leader in crypto. Can it continue?
Ethereum broke out over $2,140 earlier this month and continues to hold up over this mark. One could make a similar observation about the $1,975 to $2,000 area.
With a bit larger of a push, Ethereum will extend to the two-times range extension at $2,765. Above that puts $3,000 in play, followed by a potential longer-term target near $3,600. That’s near where the 261.8% extension comes into play.
On the downside, though, I’m looking for short-term support near $2,500 and the 10-day moving average. Below that could put the 50-day moving average and $2,140 area back in play. Just try to keep the levels in the focus and emotions out of the mix.
Top Stock Trades for Tomorrow No. 2: Microsoft (MSFT)
Click to Enlarge
Microsoft (NASDAQ:MSFT) reported solid earnings, but the stock is being sold on the news.
The stock underwent a beautiful rotation early in the month, kickstarting a massive grind to new all-time highs. For shares to pull back slightly is only reasonable — even with solid quarterly results.
The stock dipped right to the 21-day moving average and is giving bulls a solid bounce thus far. From here, we have a reasonable range to trade against.
On the downside, keep an eye on Wednesday’s low. A break of this level (and particularly a close below it) could put the 10-week moving average in play, followed by the $240 level.
On the upside, however, let’s see if Microsoft can reclaim the 10-day moving average. If it can, MSFT stock will probably close the gap and get back to $260. That will put new highs in play.
For now, keep an eye on Wednesday’s range.
Top Stock Trades for Tomorrow No. 3: Boeing (BA)
Click to Enlarge
Boeing (NYSE:BA) is having a similar reaction after its earnings report, down nearly 3% on the day.
The stock is bouncing off the $233 area, but it’s trapped below several key moving averages. Specifically, I’m talking about the 10-day, 50-day and 10-week moving averages. Above these measures puts the $250 level back in play.
Below Wednesday’s low, and $232 could put the 100-day and 21-week moving averages on the table.
A break of the $225 to $228 area could create additional selling pressure. Ultimately it could put the 200-day moving average in play, but that doesn’t look like it’s in the immediate cards — short of a larger market correction.
Top Trades for Tomorrow No. 4: Microvision (MVIS)
Click to Enlarge
Microvision (NASDAQ:MVIS) has been making the rounds on Reddit and in trading discussions, as the volatile stock has made some massive moves lately.
Shares were able to break out over the $19 to $19.25 area this week, ultimately running toward $28. For now, MVIS stock is struggling to hold up over the prior high at $24.18. All of these levels don’t mean too much to me though, only one of them does.
Overall, MVIS stock is too volatile for most traders. However, those that are riding nice gains in the stock will want to keep $19 in mind. A close below this level means that former resistance is not acting as support. If it is support, bulls can remain in control.
Other than that, I want to see the 10-day moving average act as short-term support. Above the all-time high (at $28) could open the door to $30, then the 161.8% extension near $33.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in any of the securities mentioned in this article.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
