It is the S&P 500’s strongest weekly gain — up more than 6% the past five days — since November 2020. With that in mind, here are the top stock trades I’m watching next week.
Top Stock Trades for Monday No. 1: Bitcoin (BTC-USD)
Bitcoin (BTC-USD) has been trading better lately as it continues to put in a series of higher lows and hold the $37,000 area. It’s now back above the 10-day, 21-day and 50-day moving averages, as well as the daily VWAP measure.
Last week’s high is nearby at $42,590. If it clears this level soon — or if it pauses here and gives us two weekly highs near each other — bulls can look for a rotation back through this area, putting the $45,000 to $46,000 area back in play.
Above that opens the door to the 200-day.
On the downside, however, a move below $40,000 puts the $37,000 area and uptrend support back in play.
Top Stock Trades for Monday No. 2: Ethereum (ETH-USD)
Like Bitcoin, Ethereum (ETH-USD) is also trading better. It’s already cleared downtrend resistance and is also putting in a series of higher lows. Also like Bitcoin, Ethereum is back above its short- and intermediate-term moving averages.
Now pressing higher, keep an eye on the $3,000 area. Not only is that a nice round number, but it’s also near where downtrend resistance and the March high comes into play.
Above that opens the door to the $3,300 area.
On the downside, though, a move below its key moving averages — the 10-day, 21-day and 50-day — puts $2,500 back in play.
Top Stock Trades for Monday No. 3: Dogecoin (DOGE-USD)
Last but not least of our crypto coverage is Dogecoin (DOGE-USD), which has been crushed amid the recent bear market in “risk-on” assets.
Currently struggling with the 10-day, the 21-day sits just above today’s high and has been active resistance all month. If we can get a push above this level, though, it could create a quick pop up to the 13 to 14 cent range and the 50-day moving average.
In doing so, it will also clear the 12 cent mark, which was roughly the January low and has been acting as resistance.
On the downside, however, watch the 10.5 cent mark. Below that puts Dogecoin below the March and February lows, as well as downtrend support. It will put the 8.8 to 9 cent range in play.
Top Trades for Monday No. 4: StoneCo (STNE)
Exploding higher on the day, StoneCo (NASDAQ:STNE) rallied more than 42% on Friday.
The rally sent the stock right to the $14 resistance area, but up through the 50-day moving average. I would love to see StoneCo hold the latter as support.
However, a move below today’s low of $12.09 could put the 10-day and 21-day moving averages in play, as well as the gap-fill level at $9.83.
On the upside, let’s see if the stock can push through the daily VWAP measure near $15. That could open the door to the 50% retracement near $17.25 and the 61.8% retracement near the $19.50 to $20 zone.
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.