It was a choppy but higher day in the market as investors get ready for the Federal Reserve meeting on Wednesday afternoon. The group will likely elect to raise interest rates by 50 basis points at the meeting, but by now that is being priced into the market. Let’s look at a few top stock trades going into midweek.
Top Stock Trades for Tomorrow No. 1: Bitcoin
Bitcoin (BTC-USD) has been leaning lower lately, and as we expressed a week ago, the trend has not been all that favorable for the bulls. The 10-day and 21-day moving averages continue to squeeze Bitcoin lower, as it now leans on channel support and the April low.
It was recently rejected by the midpoint of the channel and the 50-day, as Bitcoin is now down five weeks in a row and working on its sixth.
If we can get a pop, the 10-day and 21-day moving averages are on watch. If they’re resistance, the short-term trend remains with the bears. Should Bitcoin push through them, the 50-day is on tap. Above that could open the door to the midpoint of the channel, then $45,000.
On a downside break, the $33,000 to $35,000 area is in play.
Top Stock Trades for Tomorrow No. 2: AMC Entertainment
Is AMC Entertainment (NYSE:AMC) a buy down here? Personally, it’s not one I like to dabble with all that often, because the volatility is a bit too extreme. However, as it sits in this $13.50 to $15 support area, it’s one that bulls may want to keep an eye on.
If we get a little deeper dip, it may sweeten the risk/reward setup. Otherwise, keep an eye on whether this one can hold above $13.40.
A pop above the 10-day could open the door to the $18 area. That’s the 21-day and 50-day moving averages. Above that will open the door up to $20 and that’s followed by downtrend resistance (blue line).
Top Trades for Tomorrow No. 3: Airbnb
Airbnb (NASDAQ:ABNB) has been trading terribly lately. After three straight downside flushes, investors are de-risking ahead of tonight’s earnings report.
The move was enough to send it below the $150 area, as it now dances around in the mid-$140s. Depending on the reaction to earnings tonight — the reaction in Expedia (NASDAQ:EXPE) wasn’t great — this one could go one of two ways.
If we break down and trade lower, the $130 area is on watch. This level has been support for more than a year, so it’s quite significant. If it fails, it puts the all-time low from December 2020 in play at $121.50.
On the upside — wow! — there is a mess overhead in the low-$160s. A multitude of moving averages and VWAP measures crowd the way. However, there is a silver lining with the 61.8% retracement sitting just under $165. If Airbnb can clear this mark, that would be notable, because it puts the stock over all of that mess. Then we could be looking at a nice push higher.
Specifically, downtrend resistance (blue line) will be in play, followed by a potential rally up toward the April highs near $179.
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.