Stocks were buried off the open, but rather than sell the market down lower, investors bought the dip as stocks rallied hard off the lows. Are we trying to bottom? Let’s look at a few top stock trades — and cryptos — for Thursday.
Top Stock Trades for Tomorrow No. 1: Bitcoin (BTC-USD)
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Look at the way Bitcoin (CCC:BTC-USD) rallied today, bursting higher by about 7.6%. That came after yesterday’s explosion over the $50,000 mark. It has now rallied in four-straight sessions, and in seven of the last eight days.
With Wednesday’s rally, Bitcoin went monthly-up over the September high at $52,900.
From here, I would love to see the 61.8% retracement and the September high act as support. If it does, it increases the likelihood that Bitcoin can rally to the 78.6% retracement. Above that puts $60,000-plus in play.
However, back below $50,000, and the 50-day moving average is on the table, along with $47,200.
Top Stock Trades for Tomorrow No. 2: SmileDirectClub (SDC)
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SmileDirectClub (NASDAQ:SDC) is having a great week, with strong back-to-back rallies. In fact, shares are up more than 30% in those two sessions.
While it can’t be seen with the weekly chart, there was a daily gap at $6.63. Although it’s since been filled, this level remains a troublesome area for SDC stock.
To clear this mark puts the $7 area, $7.20 level and the 21-week moving average in play. So far, all of these levels have been resistance. To clear them could really open the door for SDC stock.
On the downside, though, a drop below $6 could put uptrend support back in play (blue line). Below $5, and this one could make new lows.
Top Stock Trades for Tomorrow No. 3: Affirm Holdings (AFRM)
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Affirm Holdings (NASDAQ:AFRM) is ripping higher again, this time on positive news with Target (NYSE:TGT). The stock has been an incredible performer lately, particularly with the weakness in the overall market.
With Wednesday’s move, it took out the September high at $133.17 after reclaiming the 10-day and 21-day moving averages. If the stock can hold up over $133, it will be very bullish.
That said, uptrend resistance could be difficult to hurdle. If it does, the prior high near $147 and the 161.8% extension up at $148 would be a great upside target.
Below $133, however, and let’s see if the eight-day or 10-day moving averages act as support.
Top Trades for Tomorrow No. 4: Ondas (ONDS)
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Ondas (NASDAQ:ONDS) burst to life last week and bulls haven’t let those gains slip. The stock broke out over the 200-day moving average, but continues to hold this level — along with the 10-day — as support.
Over $9.50 now and flirting with a move above $10, ONDS stock could be set for more gains. Particularly, if we get a rebound in the stock market, I could see a scenario were Ondas climbs back to $12.
On the downside, though, losing the 200-day and 10-day moving averages, as well as $9.50, could put the $8.30 to $8.50 area in play.
On the date of publication, Bret Kenwell held a long position in ONDS. 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.
