Thursday was full of more tricky and choppy trading as the monthly options expiration nears, which has traders frustrated with the action. Let’s look at how the charts are shaping up for a few top stock trades.
Top Stock Trades for Tomorrow No. 1: Bitcoin (BTC-USD)
We came into Thursday with Bitcoin (CCC:BTC-USD) holding up over $60,000 following two false breakdowns to the 50-day moving average. Those back-to-back dips resulted in quick bounces for BTC as bulls looked for a squeeze higher.
Instead, the cryptocurrency plowed lower, likely blowing out a few stops along the way.
However, the $57,830 area continues to hold as support, while we’re getting a decent bounce from the 10-week moving average — Bitcoin’s first test since Oct. 3.
Is that the all-clear? Not quite.
A two-times daily-up rotation over approximately $60,950 would open the door for more gains, putting the 10-day and 21-day moving averages in play. Above that and the $64,900 to $65,000 area is on the table.
On the downside, today’s low is the obvious risk point we must keep an eye on. A move below it (or worse, a close below it), could put the $53,000 to $54,000 area in play.
Top Stock Trades for Tomorrow No. 2: Apple (AAPL)
It has been awhile since we’ve talked about Apple (NASDAQ:AAPL), hasn’t it? With the stock making new all-time highs, though, I think AAPL stock is worth mentioning.
While the rest of the market is having trouble gaining traction, Apple is finding its groove. Shares are now up for five straight sessions.
If Apple can power above $160, it opens the door to the 161.8% extension up near $169.
On the downside, a failure to hold the high opens Apple up to a decline back to the $152 to $153 area, as well as the 10-day moving average. This stock has been slowly but surely pushing higher. Maybe AAPL stock is setting up for a larger push into year-end.
Top Stock Trades for Tomorrow No. 3: PayPal (PYPL)
That low comes into play at $200.68. Aggressive longs bought PYPL stock once it reclaimed that mark and used today’s low as their stop-loss. The conservative traders in that group won’t hold overnight.
Instead, they’ll look to see if there’s one more chance tomorrow. We’ll see, but for now we have to be thinking about a potential push higher — especially with that divergence on the Williams %R reading.
A gap-down below Friday’s low that reclaims $199.20 will again have reversal bulls jumping on this stock. Keep an eye on PayPal.
Top Trades for Tomorrow No. 4: Alibaba (BABA)
Last up, it has been such a tough ride for Alibaba (NYSE:BABA). The stock bottomed at $138.43 in early October, but it struggled mightily with that $180 resistance area we have mapped on the chart here.
Now gapping below this month’s prior low — as well as the 50-day moving average — likely has bulls in a risk-off stance. I don’t blame them.
From here, we need to see if BABA stock can go daily-up over its post-earnings high. If it can, it puts the prior November low in play at $158.30, along with the 50-day moving average. Above these marks and the $180 area will be in focus.
On the downside, all eyes are on $138.50.
On the date of publication, Bret Kenwell held a long position in PYPL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.