What a crazy couple of days it’s been, and throwing earnings into the mix only makes it crazier. We’ve got a full slate of big movers ahead of the weekend, so let’s get a look at a few top stock trades for next week.
Top Stock Trades for Monday No. 1: Block (SQ)
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We just talked about Block (NYSE:SQ) the other day, as shares were breaking the key $100 level. It was not a great look, but readers had another level on their radar: $83.
That was the perfect level to watch, too, as shares bottomed less than 25 cents from it and roared higher. Now up near $120, Block — formerly known as Square — is up nearly 45% from Thursday’s low.
These moves are so darn tough because they are so big and come at a time when panic and frustration are high.
Now back above the 10-day and 21-day moving averages, I want to see if Square can hold up over these moving averages and the $100 level. A break of the latter technically puts this month’s low back in play.
If it can push higher next week, however, look for a test of the February high and the declining 50-day moving average.
Top Stock Trades for Monday No. 2: Coinbase (COIN)
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Coinbase (NASDAQ:COIN) also reported earnings, but was a bit more mixed on the session. Shares ended the day Friday down just 1.5%, which is pretty muted for a volatile stock like this.
In any regard, the key levels have really shown themselves lately. On the upside, that level is $217. On the downside, though, it’s $162.50.
The latter ended up holding up as support on Thursday, and we’ve seen a nice spike since. However, Coinbase remains below its 10-day and 21-day moving averages, and thus, it leaves this area vulnerable to another retest.
On the upside, a push through the short-term moving averages opens the door to the declining 50-day — which has been active resistance for many growth stocks lately — as well as the $217 range resistance level.
Top Stock Trades for Monday No. 3: Etsy (ETSY)
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Unlike Coinbase, Etsy (NASDAQ:ETSY) had a nice post-earnings rally, up 16% during Friday’s session.
Earlier this month, Etsy broke out of a sharp falling wedge. From here, I really want to see the 10-day and 21-day moving averages hold as support. Below Friday’s low of $131.25 could put more selling pressure on the stock.
On the upside, though, this $147 to $150 area has been acting as resistance. Above $155, and the declining 50-day could be in play.
Top Trades for Monday No. 4: Foot Locker (FL)
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Last but not least, we have the always-volatile Foot Locker (NYSE:FL), which is getting smashed after reporting earnings this morning. Shares were down almost 30% on the day, undercutting a number of key support levels.
If we take the entire range from the March 2020 low to the 2021 high, the 61.8% retracement comes into play at $36.27. What else comes into play there? The 200-month moving average, which has been a notable support and resistance level over the years.
Shares blew right through this zone, which was a huge disappointment for bulls.
For now, the 78.6% retracement is giving Foot Locker stock some support, as is the key $27 to $28 area. If these levels fail, then I don’t know. Perhaps $20 is back on the table.
Back over $30 and perhaps the stock can make a push back toward the 200-month moving average.
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.
