Tomorrow will mark the end of the first quarter, with a massive rebalance trade that has been in play for several days now as funds reallocate and move money in and out of stocks and bonds. With that in mind, let’s look at a few top stock trades going into tomorrow.
Top Stock Trades for Tomorrow No. 1: Bitcoin (BTC-USD)
Bitcoin (BTC-USD) prices have been performing really well lately. On Sunday, the cryptocurrency went monthly-up over the February high with authority.
However, it’s now running into channel resistance and the 200-day moving average. How Bitcoin responds from here will be key. If it cannot push through, active bulls will want to see it hold the 10-day moving average and the February high near $46,000.
If it can push through this area, though, then it opens the door to $50,000 and the 50% retracement near $51,000. Above that and the 61.8% retracement is on deck near $55,000.
Top Stock Trades for Tomorrow No. 2: Solana (SOL-USD)
We don’t talk about Solana (SOL-USD) all that much, but it too has been trading much better lately. As I look at the chart, it’s made a strong move off the $75 area, which was key support.
Now above all of its short- and intermediate-term moving averages, bulls need to see how SOL contends with the February high near $122. So far, it’s halting in its tracks (unlike how Bitcoin handled last month’s high).
If it can push through this area, look for a possible rally up to the 21-week and 200-day moving averages, the latter of which comes into play near $150.
On the downside, however, look at the 10-week and 10-day moving averages for possible support. If they fail, $100 could be in play, along with the 50-day.
Top Stock Trades for Tomorrow No. 3: Micron (MU)
Micron (NASDAQ:MU) had a nasty reaction to earnings on Wednesday. At the highs, shares were up more than 5%, but the stock has now reversed.
It fell by about 3.5% on the day and is down almost 8% from this morning’s high. The stock is also trading below last week’s high and is threatening to break below the 200-day, 21-day and 10-day moving averages.
If that’s the case and we lose this week’s low, then the $75 area is certainly a possibility. Below that is the gap-fill level near $73.50.
Top Trades for Tomorrow No. 4: Chewy (CHWY)
Here is a weekly view of Chewy (NYSE:CHWY), which also reported earnings. The stock is being rejected by the declining 21-week moving average and $50 area.
With the decline, it’s failing to hold last week’s high, as well as the 10-week moving average. Now coming into the low $40s, it’s hard not to think this one could test down into key support in the $35 to $38 area.
If that’s the case, a further break could put $30 in play, which was a major level in 2019 and 2020.
On the upside, though, I would like to see Chewy back above today’s high at $45.30. Not only is that the post-earnings high, but it would put the stock back above the 10-day, 21-day and 50-day moving averages, all three of which the stock is currently below.
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.