Today is the end of the first quarter, with Friday set for not only the start of April and Q2, but also the monthly jobs report. With all of that in mind, let’s look at a few top stock trades ahead of the session.
Top Stock Trades for Tomorrow No. 1: Ethereum (ETH-USD)
Click to Enlarge
Yesterday we looked at Bitcoin (BTC-USD), and today we look at Ethereum (ETH-USD). Both cryptocurrencies have been trading better lately and are pausing after a monster rally.
For now, Ethereum is leaning on the February high as support, but as long as it can hold above the 10-day moving average, I believe we have a bullish setup here.
A break below these measures puts the $3,000 zone in play, along with the weekly VWAP measure and the 21-day moving average. The 50-day isn’t far off at that point, and neither is the topside of prior downtrend resistance.
On the upside, however, it’s pretty simple: We need to see Ethereum take out this week’s high and the 200-day moving average.
Top Stock Trades for Tomorrow No. 2: Ark Fund (ARKK)
Click to Enlarge
Unlike Ethereum, this isn’t an easy one to figure out. The Ark Innovation Fund (NYSEARCA:ARKK) is a tough one from here. On the one hand, it’s been crushed over the past few months. On the other hand, it’s struggling to hold key levels as it is being rejected by the $70 to $72 zone.
If you want to talk about some positives, it did break out over downtrend resistance (blue line) and reclaimed several short-term moving averages. It hasn’t done that in months prior to this recent rally.
From here, I consider it key to hold the 21-day moving average. If it breaks that level, it’s out of moving averages it can lean on for support and it’s below several weeks worth of lows. That puts sub-$60 in play, followed by the lows in the low-$50s.
On the upside, though, keep an eye on this month’s high, which double-topped near $72. Over that and ARKK will need to contend with the 200-week moving average, but at least it will be moving in the right direction.
Top Stock Trades for Tomorrow No. 3: FuboTV (FUBO)
Click to Enlarge
FuboTV (NYSE:FUBO) is one of those stocks that just doesn’t look good. It’s trending on a few sites I follow, but man, this stock can’t even regain its 10-day and 21-day moving averages. That’s bad after a market-wide rally like this.
If you’re looking to buy, this is akin to buying a falling knife still. Maybe there’s value — I don’t know — but the technicals tell me to stay away.
On the upside, the stock needs to clear $8 and these two key short-term moving averages. That will put the 50-day in play.
Otherwise, it looks like it has a date with the $6 area.
Top Trades for Tomorrow No. 4: Apple (AAPL)
Click to Enlarge
Zooming in here with a four-hour chart (with some daily moving averages overlaid on it) I want to show a couple of things with Apple (NASDAQ:AAPL).
First, you want to look for dip-buying opportunities in the strongest stocks, which Apple has been as it ripped off 11-straight daily rallies before the recent two-day dip.
When I look at Thursday’s morning decline, I see support came into play at the 10-unit moving average on the four-hour chart and the gap-fill level. Of course, then it fell off at the end of the trading day to end Thursday down about 1.8%.
Always look for confluences of support and resistance, as it increases your odds of success buying the dip or selling into resistance. Additionally, a breakout or breakdown below a multi-confluence support/resistance level adds weight to the move — in my opinion. Meaning a breakout is more meaningful if it clears multiple levels and a breakdown is more noteworthy if multiple layers of support fail at once.
That said, Apple still looks a bit tired. On Friday, let’s see if get a daily-up move over around $178, which puts the $179.50 to $180 area in play — this week’s high.
As for the downside, a daily-down rotation below around $175.50 opens the door to the 10-day moving average, this week’s low near $172 and the 21-unit moving average on the four-hour; See all that confluence?
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.
