Stocks have struggled all week and now they’re getting obliterated on Friday, ending the week on a sour note after a poor monthly jobs report. With that in mind, let’s look at a few top stock trades going into the weekend.
Top Stock Trades for Monday No. 1: Bitcoin (BTC-USD)
Like the stock market, Bitcoin (CCC:BTC-USD) has not been having a good run lately. After its recent flush, the cryptocurrency could not reclaim the $59,000 area.
After repeated efforts, this area — along with the declining 21-day moving average — continued to reject Bitcoin this week. Now pushing lower, the $53,500 level is in focus.
If this level fails to hold, it could put the 61.8% retracement and the 21-week moving average on deck. Below that opens the door to the 200-day moving average.
On a bounce, however, bulls need to see Bitcoin reclaim the 21-day and 10-day moving averages in order to have a sustainable upside rally.
Top Stock Trades for Monday No. 2: Ark Innovation Fund (ARKK)
What a brutal run it’s been for the Ark Innovation Fund (NYSEARCA:ARKK), which is now down 40% from its all-time highs.
ARKK is breaking below the May low at $97.22, which was the bear-market low before a strong $30-plus per share bounce.
It’s coming right into the 10-quarter moving average, which is not everyone’s go-to measure necessarily, but it could provide some sort of stabilization. Despite mild losses in the broader market, growth stocks have been decimated.
Should ARKK continue lower, we’ll need to see how it handles the 200-week moving average and the 61.8% retracement.
On the upside, though, bulls need this baby back above $97.22, then $100-plus.
Top Stock Trades for Monday No. 3: Microsoft (MSFT)
A favorite among many investors, Microsoft (NASDAQ:MSFT) has been pulling back as well.
This nice winner is pulling back right into its 10-week and 50-day moving averages. If this area holds, I’m looking for a bounce into the $328 to $330 area. Above that puts the 10-day and 21-day moving averages in play.
On the downside, however, there are two zones that interest me should support fail.
Below the 50-day is the gap-fill level at $312.40. If shares continue lower, the $305 breakout area and the 21-week moving average are in play.
Top Trades for Monday No. 4: Xpeng (XPEV)
Now below the $45 breakout area, bulls will need to see if the 50-day moving average can hold as support.
If it can, a move back over $45 could quickly put the $48 to $50 zone on deck.
A move below Friday’s low would put the 200-day moving average in play, along with the $38 to $40 zone.
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.