The bulls showed up to play on Wednesday, holding a bulk of its gains for most of the day. With that in mind, let’s look at a few top stock trades for the active movers.
Top Stock Trades for Tomorrow No. 1: Bitcoin (BTC-USD)
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We looked at Bitcoin (BTC-USD) not too long ago and at the time, it was pushing up toward the $45,000 area. However, this area ended up rejecting the cryptocurrency, as it rolled back over.
Unfortunately, the 10-day, 21-day and 50-day moving averages did not work together to provide a strong layer of support. Fortunately, $37,500 held as support and Bitcoin put in another higher low.
One could make an argument that we’re actually seeing a bear flag formation, which is essentially a bearish consolidation pattern amid a larger decline. However, bulls will argue that Bitcoin is starting to trend in the right direction and is now back above those three key moving averages.
If it loses these marks again, the recent low near $37,500 needs to hold, otherwise, a test of uptrend support is in play (blue line).
On the upside, however, keep an eye on the $45,000 area. A push above that opens the door to the 50-week moving average, then the declining 200-day.
Top Stock Trades for Tomorrow No. 2: Oil (USO)
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Oil has been such a volatile and crazy trade lately. This morning I said it was wavering quite a bit, but that “a break in either direction can create a continuation move.”
The levels I had outlined the other day included the $103 to $105 area, which is where crude ended up finding its footing to rebound up toward the 10-day.
For now and for me, this one is too volatile to trade. Investors can do it if it suits their style, but the CL contract (shown above) is no joke. Traders can use the QM contract for a smaller size, but it too is no joke.
There’s also the United States Oil Fund ETF (NYSEARCA:USO), which may have support in play near $70.
Keep in mind, though, the headlines and the Russian invasion of Ukraine will continue to drive volatility with oil.
For now, a break of Wednesday’s low in the CL contract could put $100 and the 21-day moving average in play. Over $100 and the $115 to $116 zone is on the table.
Top Stock Trades for Tomorrow No. 3: Netflix (NFLX)
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Netflix (NASDAQ:NFLX) is desperately trying to find its footing down here but continues to struggle. Shares are down in 10 of the last 11 weeks and have fallen considerably from the highs, down 49%.
For now, it’s holding the January low and prior 2022 low of $351.46 after temporarily breaking below it earlier this week.
On the upside, the $390 to $410 area is critical, particularly the upper end of that range. If Netflix can clear this area — including the 10-week and 200-week moving averages — we could be looking at a significant rebound in the making.
On the downside, however, a continued move lower could put $300 or lower in play. In a worst-case scenario, traders would likely be looking at the $250 area, which is a retest of the Covid lows.
Top Trades for Tomorrow No. 4: CrowdStrike (CRWD)
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CrowdStrike (NASDAQ:CRWD) reported tonight and given the trends in cybersecurity, one would expect this company to do pretty well. That doesn’t mean the stock will, though.
If we rally, keep an eye on the 21-day and 50-day moving averages. Up through those marks puts the $200 area and 10-month moving average in play. Earlier this month, those levels were active resistance.
On the downside, though, $150 to $153 has been significant support. A dip to this level that doesn’t hold creates concern that even more downside is ahead. Specifically, it could put the $118 to $120 area in play, which was a notable support zone in the past.
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.
