More volatility continues to wreak havoc on equities. It makes it tough to stick with positions for any extended period of time, assuming we’re talking about trades. With that in mind, let’s look at a few top stock trades for mid-week.
Top Stock Trades for Tomorrow No. 1: Gold (GLD)
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We have been all over the gold trade lately. When the futures spiked higher late last week, resistance was clear as day near $1960. Then on the dip, support held right where it needed to.
Trust me, I’ve had enough humble pie to know the difference between arrogance and confidence. The trade has been working really well and on Tuesday, it again gave us the rotation higher we were looking for.
Bulls who trim now can look to ride a break-even stop in gold after it bounced off the 10-day moving average and the fourth-quarter highs.
On the chart here, I’m using the SPDR Gold Trust ETF (NYSEARCA:GLD), which is more accessible for many investors.
If gold can continue to push higher, the highs near $182.50 are in play, along with resistance near $183.25. This is an important zone. Above it unlocks $190-plus, including the 2020 high up at $194.45, then $200.
Top Stock Trades for Tomorrow No. 2: Silver (SLV)
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As we talk about gold, we must also mention silver. For that, we’re using a chart of the iShares Silver Trust (NYSEARCA:SLV).
The SLV is doing a great job breaking out over downtrend resistance and the 200-day moving average. From here, we want to see if it can go monthly-up and quarterly-up over $23.40 an $23.50, respectively.
If it can, it puts the 50% and 61.8% retracements in play.
On the downside, though, a break of $22.50 is concerning, as it drops the SLV back below the 10-day and 200-day moving averages, as well as prior downtrend resistance.
Top Stock Trades for Tomorrow No. 3: Ethereum (ETH)
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Ethereum (ETH-USD) has caught a swift bid over the last 24 hours, as it’s now back over the 10-day, 21-day and 50-day moving averages.
That said, the trend is not yet in its favor, even though the cryptocurrency is starting to trade a bit better. As it struggles with the weekly VWAP measure, wedge resistance will be in play if it can clear Tuesday’s high.
Above that puts the $3,250 to $3,350 resistance area in play.
On the downside, however, watch for a break of the 10-day, 21-day and 50-day moving averages, which would be a move below $2,750.
Below $2,550 puts the Feb. 23 low in play at $2,300, then the 2021 low at $2,160. That opens the door the $2,000, then $1,750. Sorry for the numbers blitz, but those are the levels to know. Feel free to write ’em down.
Top Trades for Tomorrow No. 4: SoFi Technologies (SOFI)
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Last but not least we have SoFi Technologies (NASDAQ:SOFI), which reports earnings tonight.
This thing has been all over the map lately. We were lucky with our call on exiting SoFi stock on that spike above $16 last month, as it’s been a painful move lower since. Now rallying hard off the lows, can SoFi continue higher?
On the upside, the $13 area should be on watch. That’s where prior support turned to resistance and where the 50-day moving average comes into play.
On the downside, though, keep an eye on $10.50. A break of that mark could put the February lows back in play near $8.80.
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.
