After a powerful ramp to start the week, we’ve had a choppy, frustrating couple of sessions. Now, let’s look forward to next week and get a look at a few top stock trades for Monday.
Top Stock Trades for Monday No. 1: Ethereum (ETH-USD)
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Ethereum (CCC:ETH-USD) and other cryptocurrencies have not been trading all that well this week. Just a week ago, it looked like Ethereum was going to rotate back up to the highs.
Instead, it cracked late in the week and then plunged over the weekend. We’ve seen a meager rebound in the cryptocurrency market, but most have come under pressure once again.
Ethereum now sits on the key $3,900 level, as it toys with $4,000 and the 10-week moving average.
A break of $3,900 that’s not quickly recovered puts the 21-week moving average in play, followed by this month’s low and the 200-day moving average.
On the upside, however, $4,500 will be the level to watch next week.
Top Stock Trades for Monday No. 2: Ford (F)
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I have been watching Ford (NYSE:F) like a hawk ever since it started trading like a go-to momentum name and not a high-valuation, high-yield slug.
For more than a month, this stock has been stuck in a tight trading range, between $19 and $20.50.
I have some extensions drawn on the chart, highlighting both the long- and short-term range. The stock is running into the 261.8% extension of the long-term range now. If Ford can hold over $20.50 and/or power through $21.25, then it could put the $23 level in play.
A break back below $20.50 puts $19 on the table, along with the 10-week moving average.
Top Stock Trades for Monday No. 3: Robinhood (HOOD)
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Robinhood (NASDAQ:HOOD) stock is breaking to new lows on Friday, as the theme of lower highs continues.
There is some nice divergence as the stock makes new lows, but the relative strength index (RSI) does not. However, divergence isn’t enough. We need some sort of rotation.
Next week, bulls could look for an open below the current low and a reclaiming of said low, giving us a potential bullish reversal. Otherwise, keep an eye out for a potential rotation over this week’s high at $23.74.
If HOOD stock can clear this measure, it will also put it above the 10-day moving average and at least put a relief bounce in play. As for the downside, well, this one is no man’s land, and trying to pick a bottom is like trying to catch a falling knife.
I have no idea where the low will be.
Top Trades for Monday No. 4: Costco Wholesale (COST)
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Costco Wholesale (NASDAQ:COST) is popping to new all-time highs on earnings but is lacking the conviction that we’re seeing with some other post-earnings movers.
The stock is fading a bit from the $560 level, but on the plus side, it’s back above all of its major moving averages.
The approach here is pretty straightforward. A move over $561 (which gives us a two-times weekly-up and a monthly-up rotation) opens the door to the 161.8% extension near $590.
If Costco can’t push through $560, bulls may be on the lookout for a dip down to the 10-day and/or 21-day moving averages, where it likely presents a buy-the-dip opportunity.
If these measures fail as support, $525 may be on tap.
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.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
