The bulls aren’t slowing down. While October is known for its scary moves to the downside, it’s also a month that tends to see the fourth-quarter low before a year-end rally. Are we entering that period now? Perhaps. With all of that in mind, let’s look at some top stock trades now.
Top Stock Trades for Tomorrow No. 1: Bitcoin (BTC-USD)
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Bitcoin (CCC:BTC-USD) is moving to its highest price since April, when it previously topped out at $64,900.
Now over $63,000, the largest cryptocurrency is working on a move to new highs. Can it get there?
I think that it can.
With a slightly stronger push, Bitcoin could see $65,000. It will be interesting to see how it reacts to this area. Does Bitcoin break out and potentially push up toward $70,000 or will it make new highs and pull back?
If it’s the former, it could set the tone for a possible push up to the 161.8% extension near $87,000, followed by a move to $100,000.
However, if it’s the latter and shares pull back, see if $57,000 and the 10-day moving average acts as support.
Top Stock Trades for Tomorrow No. 2: BlackBerry (BB)
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BlackBerry (NYSE:BB) stock is enjoying a nice gain on the day, gaining more than 14% on the day.
The move is thrusting the stock over the 200-day moving average and right into the 61.8% retracement of the current range. If the stock can clear the September high at $11.05, bulls will have a monthly-up rotation on their hands, opening the door to $12.
Above $12, and the 161.8% extension of the current range is in play at $13.73, followed potentially by the $15 to $16 area.
On the downside, though, I want to see some of these key moving averages act as support. If they fail to do so, uptrend support (blue line) may be back in play.
Top Stock Trades for Tomorrow No. 3: Verizon (VZ)
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Verizon (NYSE:VZ) will report earnings before the open on Wednesday and so far, the stock has not been trading well in the weeks leading up to the report.
Shares were trading in a perfect downward channel. However, support eventually gave out as Verizon broke the prior 2021 low at $53.83. After several weeks of losses, shares are starting to find their footing near the 100-month moving average and the monthly VWAP measure.
The typical setup would be to wait for this weekly candle to close and trade against the high or low, while aggressive bulls may be long against last week’s low. However, earnings change that typical approach.
A break of last week’s low at $50.86 could put the Covid-19 lows in play at $48.84. On the upside, let’s see if VZ stock can push up to the prior 2021 lows at $53.83 and the 10-week moving average.
Top Trades for Tomorrow No. 4: Fastly (FSLY)
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Like BlackBerry, Fastly (NYSE:FSLY) stock also enjoyed a strong rally on the day, up close to 11%.
Shares previously reclaimed the 10-day, 21-day and 50-day moving averages and had been consolidating coming into Tuesday’s session. Tuesday’s rally is putting Fastly stock in a monthly-up rotation, clearing last month’s high at $48.23.
If we get a real squeeze going in FSLY stock, it could put the 200-day moving average and key $62 level on deck. While that seems like a powerful squeeze — and it is — keep in mind this stock fell more than 75% from its highs at one point this year.
On the downside, however, it’s difficult to measure a reasonable risk level. However, a break of its short-term moving averages (the 10-day, 21-day and 50-day) could put sub-$40 in play.
On the date of publication, Bret Kenwell held a long position in FSLY. 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.
