It’s more choppiness on Friday — can you expect anything else? — as traders look for some sort of traction on the long side but continue to find no meaningful path forward. The volatility index remains elevated and while Apple’s (NASDAQ:AAPL) post-earnings pop is alleviating some pain in tech, we’re still waiting for a more powerful rally. Let’s look at a few top stock trades for next week.
Top Stock Trades for Tomorrow No. 1: Bitcoin (BTC)
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I could be totally wrong about Bitcoin (CCC:BTC-USD), but to me it has all the hallmarks of starting to roll over again.
We have a bear flag pattern, with Bitcoin rallying off the lows near $33,000 from earlier this week, but doing so slowly and with a tight range. Further, it’s rallying back into downtrend resistance with the 10-day moving average.
I will be wrong if Bitcoin can push through its 10-day and take out this week’s high at $38,946. If it can do that, it puts the declining 21-day moving average and $40,000 level in play.
On the downside, keep an eye on the $33,000 zone if Bitcoin does roll over. A break of this area could put the $30,000 area on deck, which was strong support this summer.
Top Stock Trades for Tomorrow No. 2: Visa (V)
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Not many companies are having a very good reaction to earnings, but Visa (NYSE:V) is bucking the trend. Shares are ripping higher and engulfing the past several weeks of price action.
Amid the move, Visa stock is reclaiming a number of key areas (as you would expect). While it’s back above the weekly VWAP (volume-weighted average price) measure, it’s running right into the 50-week moving average, which it has struggled with several times.
I’ll be watching this measure carefully in the coming days. If Visa can clear it, it puts the monthly high in play at $226.79. Assuming that move comes after Monday, we could be looking at a monthly-up rotation — which is undoubtedly rare in the current market environment.
On the downside, a break of $211 isn’t good. It will mean that Visa lost too many important moving averages and volume measures.
Top Stock Trades for Tomorrow No. 3: U.S. Steel (X)
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U.S. Steel (NYSE:X) did a great job finding its footing on the 21-month moving average on Monday and rallying off that mark. All week it held up, as it now tries to push back to the upside.
On the upside, watch the $20.50 to $20.60 area and the declining 10-day moving average. This level was prior support but it failed earlier this year. If it’s resistance (along with the 10-day moving average) then bears will remain in control.
Back above both measures and the bulls will have taken back some momentum, putting the monthly VWAP measure in play, followed by the $22.50 zone.
On the downside, keep an eye on the 21-month moving average and this week’s low.
Top Trades for Tomorrow No. 4: Robinhood (HOOD)
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Last but not least, we have Robinhood (NASDAQ:HOOD). I’ve been asked about this one more than once in the last few days.
Unfortunately, the chart is in pretty rough shape.
Forget about from the highs or the initial public offering (IPO) price … Robinhood stock has disintegrated from the mid-December low near $20. This level went from support to resistance in a hurry and shares remain trapped in a brutal downtrend below all of their moving averages.
I don’t know where fair value is, although at some point there should be some value here. Above Monday’s low at $11.15 is a positive, but back below this mark will put Friday’s low in play.
Perhaps this is the reversal to get HOOD stock going, but bulls will have to be careful. Below $11.15 puts today’s low on deck. On the upside, $15 could be in play if Robinhood can clear the 10-day.
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.
