The jobs report crushed expectations, and after a strong report from Amazon (NASDAQ:AMZN), we got a powerful rally in the stock market on Friday. That helped make up for Thursday’s poor performance. So, with that in mind, let’s look at a few top stock trades for next week.
Top Stock Trades for Monday No. 1: Bitcoin (BTC-USD)
Bitcoin (CCC:BTC-USD) looked bearish to me the other week, and I said I would be wrong if it cleared the 10-day and the $39,000 level. Well, it did just that.
Interestingly, I believe Bitcoin helped fuel Friday’s rally in tech and “risk-on” assets.
Now roaring back above $40,000, Bitcoin is above the “flash crash” low in December and into a key area. If it can continue higher, I want to see Bitcoin test into the declining 50-day moving average and the weekly VWAP measure.
Over $45,000 puts the 200-day and potentially $50,000 in play.
On the downside, though, let’s see if the 10-day and 21-day moving averages can act as support. If they do, that’s indicative of healthy price action. If not and we break the recent low near $36,350, then we could see $35,000 again and retest last month’s low.
Moreover, a break of last month’s low could put the major support area near $30,000 in play.
Top Stock Trades for Monday No. 2: Ethereum (ETH-USD)
Like Bitcoin, Ethereum (CCC:ETH-USD) has come roaring back to life. It pushed through that notable $2,700 area and its 10-day and 21-day moving averages.
However, it’s running right into its weekly VWAP mark and has yet to reclaim its December “flash crash” low — unlike Bitcoin.
From here, I don’t want to see Ethereum lose $2,700, but I really don’t want to see it back below $2,500. If we do see that, then the January low could be on the table for another test.
On the upside, however, $3,250 and/or the declining 50-day moving average is the next area of interest to me. Above $3,350, and the 200-day is in play.
Top Stock Trades for Monday No. 3: Unity (U)
Unity (NYSE:U) is a great company, but the stock is a volatile mover with a high valuation. Still, I love it.
We have a double bottom off the $90 to $92 area. Shares have been struggling with this $110 area over the past two weeks, but if Unity can hurdle this point and reclaim the 21-day moving average, it will put $115 in play.
Admittedly, that’s just a $5 move, but this zone has proven significant. Above $115, and the 200-day is in play alongside the weekly VWAP near $124.
On a dip, though, a break of $100 could put $90 back in play. If buyers come back to growth stocks, Unity can fly.
Top Trades for Monday No. 4: Amazon (AMZN)
Amazon is Friday’s big man on campus. This stock is ripping on better-than-expected results, and boy did it need it.
Not only did it help kick the stock market into gear, but it saved it from a potentially brutal decline as it’s already been struggling for quite some time.
Amazon is now back in its $2,880 to $3,500 range. That said, it’s running into a key area, including the 50% retracement, the 21-month moving average, the declining 10-week moving average and several areas of prior resistance.
If it can regain this area, $3,350 is in play, which is the 21-week and 50-week moving averages, along with the 61.8% retracement. Below $3,175, and it may lose some steam.
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