It was a sloppy trading day in the first trading session of the holiday-shortened week here in the U.S. That comes as equities were mixed and cryptocurrencies were hammered. With all of that in mind, let’s look at a few top stock trades.
Top Stock Trades for Tomorrow No. 1: Bitcoin (BTC-USD)
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I didn’t alter the charts we have been using for Bitcoin (CCC:BTC-USD), Ethereum (CCC:ETH-USD) or other cryptos. For Bitcoin, one will notice that the stock traded down to the $42,000 zone I have highlighted, before catching a bounce.
Of course, it also comes on a test of the 50-day and 21-week moving averages. But my point is very simple: Bitcoin continues to trade in a very technical manner.
Now rebounding hard from the lows, bulls need to see Bitcoin stay above the 200-day moving average. Even more beneficial would be it staying above the $47,000 mark. If it can, let’s see how Bitcoin handles $50,000.
Back below the 200-day puts the 50-day in play and if that level is lost, the low remains vulnerable. Be careful, as Bitcoin trades at all hours of the day and has been especially volatile as of late.
Top Stock Trades for Tomorrow No. 2: Ethereum (ETH-USD)
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Like I said, I have not adjusted my charts despite today’s action. Yet, look how responsive Ethereum was off the $2,900 level.
This level coincided with a test of the 50-day moving average. More importantly, though, this former resistance level acted as solid support. With a solid bounce underway, Ethereum has reclaimed the key $3,300 level and the 61.8% retracement.
Although volatile, aggressive bulls can justify a long position above those marks. On the upside, let’s see if Ether can reclaim the 10-day moving average, putting $3,800 then $4,000 in play.
However, on the downside, a move below $3,300 could put the $2,900 to $3,000 area back in play.
Top Stock Trades for Tomorrow No. 3: Match Group (MTCH)
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Match Group (NASDAQ:MTCH) is up nicely on the day, climbing more than 7.5% on news it will be added to the S&P 500.
With the rally, Match Group is trying to break out over range resistance, at $159.50. Above this mark, and aggressive bulls can be long, looking for a move back up to the $167.50 area. Above that, and the all-time high is in play near $175.
On the downside, though, keep an eye on $155.82 — Tuesday’s low.
Below that mark, and we may see a test down into those key moving averages, like the 50-day and the 200-day.
Top Stock Trades for Tomorrow No. 4: Boeing (BA)
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Boeing (NYSE:BA) stock was dealt a blow on Tuesday, falling almost 2% on negative news. However, it’s less about the news and more about the price action.
With the decline, shares of Boeing are barely hanging on to uptrend support. Aggressive short-sellers may already be selling this name, with a stop-loss potentially near $220.
If Boeing can reclaim $220 and some of its key moving averages — like the 50-week and 10-day — then perhaps we can see some upside here. Otherwise, short-sellers are likely waiting for a rotation below the August low near $211.
Below that, and the July low is on the table at $204.80, followed by $200 and then the low $190s. Overall, be careful with this one if it can’t hold $211.
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.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
