Stocks continue to chop around all-time highs as investors await more direction amid earnings. That said, let’s look at a few top stock trades starting with some cryptocurrencies.
Top Stock Trades for Tomorrow No. 1: Ethereum (ETH-USD)
The crypto trade has been on fire lately. Ethereum (CCC:ETH-USD) has rallied in 12 of the past 13 sessions coming into Tuesday, with the lone “down” day during the span sporting a loss of just 22 basis points.
Now correcting lower on Tuesday, bulls who missed the first buying opportunity may be getting a second chance.
With Ethereum, I want to buy on a test of the 10-day moving average, near $2,425. If that level holds, look for a bounce back toward $2,700 followed by a potential push up toward $2,900.
If the 10-day moving average fails to hold as support, $2,200 may be on the table. There Ethereum finds a bevy of moving averages, including the 21-day, 50-day and 200-day moving averages. I would expect these measures to act as support.
Top Stock Trades for Tomorrow No. 2: Bitcoin (BTC-USD)
Like Ethereum, Bitcoin (CCC:BTC-USD) is also trading much better. However, while Ethereum is down just one day in a row (so far), Bitcoin is working on its fourth-straight daily decline and struggling to hold its 10-day moving average.
That has me a little more hesitant vs. Ethereum, but not completely turned off. Instead, why not wait for some proof?
More aggressive bulls may already be long Bitcoin on this dip. Others may wait for the crypto to at least reclaim Monday’s low. Conservative bulls are either waiting for a daily-up rotation — which is reasonable — or a deeper decline.
If Bitcoin dips further, let’s see if tests down to around $35,000. There it finds the 21-day and 50-day moving averages. If it pushes higher instead, let’s see if Bitcoin can clear $40,000 and trade back up toward resistance near $42,500. Above that puts the 200-day moving average on the table near $45,000.
Top Stock Trades for Tomorrow No. 3: Eli Lilly (LLY)
While LLY stock was experiencing some selling pressure in the pre-market, it continues to march higher to new highs. I’d now like to see LLY stock hold above the $248 breakout level and the 10-day moving average.
If it can continue higher, a longer-term target of roughly $280 can be used — which is the 261.8% extension of the current range.
However, on a break below the 21-day moving average, bulls may want to give this one some time to reset.
Top Trades for Tomorrow No. 4: Robinhood Markets (HOOD)
Before we talk about the levels, let’s remember that Robinhood Markets (NASDAQ:HOOD) is a newly public company with a lot of attention and headlines. It’s a speculative position that jumped more than 24% today, and those who trade it must keep proper position sizing and risk management in mind.
That is paramount in trading, but even more so for volatile stocks.
In any regard, shares are blowing through the “Day One” high at $40.25. That is now a key pivot point to keep in mind. On a dip, let’s see if that level holds a support.
On the upside, we’re already seeing some selling pressure from the highs. However, should HOOD stock push through Tuesday’s high, the $50 level and the 261.8% extension near $51.25 are the next upside targets to keep an eye on.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.