It’s been a mixed couple of sessions as the S&P 500 goes out approximately flat for the week. With that in mind, let’s look at a few top stock trades for Monday, the start of a four-day trading week.
Top Stock Trades for Tomorrow No. 1: Bitcoin (BTC-USD)
Bitcoin (BTC-USD) has been struggling lately, but overall it has been trading much better on the long side. In unsurprising fashion, Bitcoin found resistance at channel resistance and the 200-day.
Now pulling back, bulls need to see the midpoint of the channel and the 50-day moving average hold as support. If it fails, it also puts it below the 10-day and 21-day moving averages and opens the door down to $40,000, then channel support around $37,000.
On the upside, we need to see Bitcoin press up back through $45,500. Above that puts the 200-day back in play.
It’s as simple as that. Go level to level without a bias.
Top Stock Trades for Monday No. 2: Shopify (SHOP)
Shopify (NYSE:SHOP) has been one of the early rollovers in the growth department. Furthermore, the stock failed reclaim the declining 10-week and 50-day moving averages — which was active resistance. After four straight down days, Shopify is also breaking down below the 10-day and 21-day moving averages, as well as the 61.8% retracement.
If Shopify loses $600 and fails to reclaim it, bulls need to look for a possible retest of the lows near $511. Just below the lows is the all-time VWAP measure between $450 and $460.
On the upside, see if Shopify can reclaim the lost support levels, starting with the 10-day and 21-day moving averages.
If we see $500 or lower in Shopify stock, I would consider a long-term buy-and-hold of this name. I’m of the opinion that it will regain its highs, even if it takes a few years.
Top Stock Trades for Monday No. 3: Pioneer Natural Resources (PXD)
It bounced right off the 10-week moving average and is back into where it has struggled previously. Short-term traders may consider a small trim near $255 and potentially another trim at $260.
However, bulls are really gunning for the $273 to $275 area, which is the 161.8% extension of the current range.
On the downside, however, a retest of this week’s low could give bulls another bounce, provided the 10-week and 50-day moving averages come into play.
Top Trades for Monday No. 4: Berkshire Hathaway (BRK.A, BRK.B)
This stock gave bulls a nice falling wedge pattern down to the 21-day moving average and is now popping higher out of that wedge. That breakout has traders looking for a retest of the $360 area.
If I’m long — which I’m not — I’m booking ⅓ to ½ at $360 if it gets there. With the rest of the position, I’d be looking for $375-ish.
On the downside, though, longs don’t want to see this one lose the 10-day and 21-day moving averages.
Get some rest traders and have a great weekend!
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.