After a powerful finish to last week, stocks opened lower on Monday. However, they quickly flipped to positive territory shortly after the open and ahead of a busy earnings week. With that in mind, let’s look at some top stock trades now.
Top Stock Trades for Tomorrow No. 1: Dogecoin (DOGE-USD)
Breakout or fake out? So far, it’s the latter when it comes to Dogecoin (CCC:DOGE-USD). The cryptocurrency started off the day strong, rallying to a high of 27.24 cents.
The move came off the 200-day moving average, highlighting that this moving average still remains resistance just as it was earlier this month. Downtrend resistance (blue line) is still in play as well, even though Dogecoin temporarily pushed through this mark today.
The failed breakout is discouraging for bulls, but there is still promise. For instance, Dogecoin is still holding up around the 25 cent mark, along with the 10-day, 21-day and 50-day moving average, as well as the daily VWAP measure.
Below all of these levels could put 20 cents back in play.
On the upside, however, a move over the 200-day moving average opens the door to 30 cents or higher.
Top Stock Trades for Tomorrow No. 2: Zillow (Z)
Zillow (NASDAQ:Z) has been caught in a nasty downtrend. It surged higher in February, and has been trending lower ever since.
There’s good news, though, despite the stock falling about 10% on Monday morning.
First, the stock is still holding the $85 mark. Honestly, I would have preferred that the stock broke below this measure then reclaimed it, giving us a long position with measured downside risk. That didn’t happen, and that’s OK.
Second, there’s a ton of volume on the day and the stock is still holding support. That’s another plus.
Lastly, there’s divergence on the Williams %R reading, which isn’t something to trade off of solely but when combined with other observations, it can give us a clue about the situation.
This is a tough one. Aggressive bulls can be long against this month’s low and look for a rebound higher. But because we’re in a downtrend, I’m not jumping out of my seat to get long.
I’d rather see an inside-and-up day or a gap below Monday’s low and a reclaim before getting long. I just want a little more proof, considering the stock’s trading history.
A further breakdown could land Zillow at its 200-week moving average.
Top Stock Trades for Tomorrow No. 3: Coinbase (COIN)
The trading in cryptocurrencies has been much better lately and thus, it’s been much better for Coinbase (NASDAQ:COIN) as well.
On Friday, shares rocketed off its key moving averages, but closed right near $280 resistance. However, Monday’s session had strong follow-through, as the stock now challenges the third-quarter high at $294.
If COIN stock can clear $294 it opens the door to the 50% and 61.8% retracements.
If it’s rejected from the $294 to $300 area, let’s see if $280 can act as support until the 10-day moving average catches up. If not, it could put the $255 to $260 area back in play.
Top Trades for Tomorrow No. 4: Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) powered higher through the summer, but stumbled in September.
Last week, Advanced Micro Devices (NASDAQ:AMD) gave us an incredible trade.
That prompted me to look for a long trade in Nvidia, which has paid off too.
If NVDA stock closes above $220, let’s see if the stock can challenge $230 resistance. We may need a minor pullback at some point in this one, but a breakout over $230 could set up a test of the $250 level.
A break below $205.11 — last week’s low — puts Nvidia below all of its short- and intermediate-term trends and is a very bad look for bulls in the short term. More conservative bulls will not want to see shares lose the 10-week and 50-day moving averages.
On the date of publication, Bret Kenwell held a long position in NVDA. 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.
