The markets opened higher on Monday and almost immediately moved lower. This week could be choppy and traction-less, with a two-day Federal Reserve meeting on deck and a quadruple-witching expiration on Friday.
Top Stock Trades for Tomorrow No. 1: Bitcoin (BTC-USD)
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Bitcoin (CCC:BTC-USD) has been struggling lately. It broke down badly over the first weekend in December. While it recovered those losses, Bitcoin has been struggling for traction.
Each modest pop has been sold into and Bitcoin hasn’t been able to reclaim the 10-day moving average. For now, the 200-day moving average has been support.
If it fails, it could open the door for a larger flush lower. Will that put $41,000 in play? It certainly could.
On the upside, however, Bitcoin needs to clear $50,000 and the 10-day moving average. If it can, it puts downtrend resistance in play and the $53,000 to $54,000 area.
Top Stock Trades for Tomorrow No. 2: Ford (F)
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Ford (NYSE:F) stock made a major breakout on Friday, rallying almost 10% on the day and closing near the highs. On Monday, it was quite the opposite with shares down nearly 5%.
For now, the stock is stuck below the $20.50 breakout level. I want to see Ford hold above this level.
We saw a dip from the long-term 261.8% extension and for me, that’s not too surprising. However, if it can hold above $20.50, I believe bulls will remain in control.
That leaves the $21.25 level in play. Above Friday’s high, and the $23 level is on the table. That’s the 261.8% extension of the current range.
Top Stock Trades for Tomorrow No. 3: AMC Entertainment (AMC)
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Meme-land is getting crushed today, with AMC Entertainment (NYSE:AMC) down more than 15% on the day. GameStop (NYSE:GME) didn’t fair too well either, falling almost 14% on Monday.
The action in AMC stock is not too surprising. Shares were putting in a series of lower highs over the past few months. Then the $33 to $35 area failed as support, while the 200-day and 10-day moving averages turned to resistance.
Now taking out the recent low, AMC stock is testing down into the monthly VWAP measure. I wouldn’t hang a two-week salary on this level holding, but if we get a bounce, see how AMC stock handles the $29 level.
If it continues lower, let’s see how that former high near $20 acts. Just a few days ago I said this level could be in play, although it didn’t seem like it at the time. Below that could put the 21-month and 50-month moving averages on the table.
Top Trades for Tomorrow No. 4: GameStop (GME)
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I’m not much for tooting any horns — particularly my own — but this morning I also noted that GameStop looked vulnerable after last week’s close.
Below the third-quarter high now, GME stock is looking to find its footing. If it can reclaim this level, see how it handles $159, which was the prior week’s low and the breakdown point in recent trading.
If the mid-$130s doesn’t act as support, the 21-month moving average may be up next near $115, followed by a potential test of $100.
Over $159, and GameStop still has its hands full, as a number of moving averages loom overhead.
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.
