The market again made a quiet push higher on Thursday, with the S&P 500 and Nasdaq hitting new all-time highs. The Dow Jones also caught a nice boost on the announcement of a new infrastructure deal. As we head into the last trading day of the week, let’s look at a few top stock trades.
Top Stock Trades for Tomorrow No. 1: Ethereum (ETH-USD)
Well, I should have said the last trading day of the week for equity markets, as crypto markets trade 24/7. In May, Ethereum (CCC:ETH-USD) bottomed at $1,737 and snapped back up to $2,900 resistance.
However, it has continued to struggle, recently breaking below last month’s low. The dip was short-lived though, as we’ve seen a quick snap-back rally in Ethereum as it reclaimed the 200-day moving average and the key $1,975 to $2,000 area.
From here, let’s see if Ethereum can reclaim the 10-day moving average, opening the door to the 21-day and $2,500 level. Above all of that puts $2,900 and the 50-day moving average back in play.
On the downside, one more big flush lower could take out the June low. In that event, it could put the 50-week moving average and the $1,250 to $1,500 area in play. That includes a retest of the prior all-time high near $1,425. That seems like a dip to buy if we get it.
Top Stock Trades for Tomorrow No. 2: Amazon (AMZN)
Amazon (NASDAQ:AMZN) has been trading really well, as it tries to break out of a multi-quarter consolidation.
Shares chopped around the May high over the last week, but ultimately pulled back on Thursday. The dip sent AMZN stock right to the 10-day moving average, giving attentive traders a solid dip to buy.
From here, the layout is fairly straightforward. If the 10-day moving average acts as support, look for a rebound back to the May high at $3,487. Above that puts $3,500 in play, followed by this week’s high near $3,525.
On the downside, a break of the 10-day moving average could put $3,400 and prior range support at $3,345 in play. Should Amazon decline that far, it would also put the 21-day moving average on the table.
Top Stock Trades for Tomorrow No. 3: KB Home (KBH)
KB Home (NYSE:KBH) fell about 7% on the day and spent most of the session near its lows.
The move comes after earnings, but it might have set up investors with a great buying opportunity. Specifically, look at the “1-2-3” nature (or “A-B-C” nature) of the decline. The dip sends KB Home right to its 200-day and 50-day moving averages.
Further, if we use a downside extension measure, the 161.8% extension comes into play just below the 50-week moving average. While we didn’t quite get there on Thursday, it’s pretty close. Lastly, notice the divergence on the Williams %R measure at the bottom of the chart.
All of these combined together do not guarantee that KBH will bounce. However, we have multiple reasons for why a bounce seems probable. That’s a great way to trade.
Lastly, we know that if shares lose $40 and the 50-week moving average and can’t reclaim it, the trade is likely too early. Therefore we have a solid risk-reward setup. If the stock bounces, look for a gap-fill and a test of the 10-day moving average first. Then we can go from there.
Top Trades for Tomorrow No. 4: The Trade Desk (TTD)
The Trade Desk (NASDAQ:TTD) has been trading really well lately, but it really exploded higher today.
After creeping through the 50-day moving average, shares rocketed through the 21-week and 200-day moving averages on Thursday. It came after some positive news related to Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG).
In any regard, TTD pushed up right to the 61.8% retracement. Yeah, and some say using technical analysis doesn’t work…
This was a great profit-taking area. Now we have to see how TTD responds. On a push up through $78, $80-plus is possible. If shares retreat, let’s see if the stock retests the 200-day moving average.
On the date of publication, Bret Kenwell held a long position in TTD. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.