The fourth quarter is here, and stocks are still trying to find their footing. Cryptocurrencies caught a nice boost too. With all of that in mind, let’s look at a few top stock trades for next week.
Top Stock Trades for Monday No. 1: Bitcoin (BTC-USD)
Bitcoin (CCC:BTC-USD) came roaring back to life after several difficult weeks of trading. Look at the series of lower highs Bitcoin was putting in prior to stabilizing and ripping higher.
However, the $40,000 to $41,000 area stepped in as support. With today’s rotation higher, Bitcoin is clearing the 21-day, 50-day and 200-day moving averages, as well as a weekly-up rotation.
Above the 50-day moving average opens the door to the $50,000 to $51,000 area, with the 61.8% retracement coming into play near the latter.
On the downside, though, we don’t want to see Bitcoin lose the 200-day moving average.
Top Stock Trades for Monday No. 2: Ethereum (ETH-USD)
Ethereum (CCC:ETH-USD) is also enjoying a strong day, but isn’t quite at the weekly-up rotation point like Bitcoin.
There’s still some hurdles left to clear, but there are big improvements with Friday’s rally. With the move, Ethereum cleared the 21-day and 50-day moving averages, as well as downtrend resistance.
The stock still needs to clear the 50-day moving average, which has been key over the last few months. If Ethereum can clear the 50-day, the $3,350 area is in play, followed by the $3,600 area.
I want to see Ethereum stay above $3,150. As long as it can do that, we should avoid a five-wave decline. That doesn’t mean Ethereum can’t go lower, it just means the current downtrend pattern is likely off the table for the moment.
Top Stock Trades for Monday No. 3: Novavax (NVAX)
The fall sent NVAX stock down into the $150s, but the rebound is putting the stock back into the key support zone between $170 and $177.
Aggressive buyers may be long over $170, although it’s a wide-risk setup with the low all the way down at $154.29. On the upside, over $177 puts the 10-week moving average in play, followed by the 200-day moving average and the gap-fill level near $200.
However, below Friday’s low puts $150 in play, followed by the 21-week moving average. Below that, and $117 is on the table.
Top Trades for Monday No. 4: Moderna (MRNA)
Moderna (NASDAQ:MRNA) also got hit hard, down about 11%. Shares were looking sick leading up to Friday, but were holding the 10-week moving average.
With Friday’s gap down, though, the stock broke $349, which should put investors on pause.
Back over $350 puts Friday’s high in play near $359, then the gap-fill level at $377 and the 10-week moving average.
Below Friday’s low puts the 21-week moving average in play. And if Moderna stock continues to selloff, the gap-fill at $261 could be on the table.
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.