After a robust end to final week, shares opened decrease on Monday. Nevertheless, they rapidly flipped to optimistic territory shortly after the open and forward of a busy earnings week. With that in thoughts, let’s have a look at some prime inventory trades now.
Prime Inventory Trades for Tomorrow No. 1: Dogecoin (DOGE-USD)
Breakout or faux out? To date, it’s the latter with regards to Dogecoin (CCC:DOGE-USD). The cryptocurrency began off the day sturdy, rallying to a excessive of 27.24 cents.
The transfer got here off the 200-day shifting common, highlighting that this shifting common nonetheless stays resistance simply because it was earlier this month. Downtrend resistance (blue line) remains to be in play as nicely, regardless that Dogecoin quickly pushed by means of this mark immediately.
The failed breakout is discouraging for bulls, however there’s nonetheless promise. As an example, Dogecoin remains to be holding up across the 25 cent mark, together with the 10-day, 21-day and 50-day shifting common, in addition to the every day VWAP measure.
Beneath all of those ranges may put 20 cents again in play.
On the upside, nevertheless, a transfer over the 200-day shifting common opens the door to 30 cents or greater.
Prime Inventory Trades for Tomorrow No. 2: Zillow (Z)
Zillow (NASDAQ:Z) has been caught in a nasty downtrend. It surged greater in February, and has been trending decrease ever since.
There’s excellent news, although, regardless of the inventory falling about 10% on Monday morning.
First, the inventory remains to be holding the $85 mark. Actually, I’d have most well-liked that the inventory broke under this measure then reclaimed it, giving us a protracted place with measured draw back threat. That didn’t occur, and that’s OK.
Second, there’s a ton of quantity on the day and the inventory remains to be holding assist. That’s one other plus.
Lastly, there’s divergence on the Williams %R studying, which isn’t one thing to commerce off of solely however when mixed with different observations, it can provide us a clue in regards to the scenario.
It is a robust one. Aggressive bulls might be lengthy towards this month’s low and search for a rebound greater. However as a result of we’re in a downtrend, I’m not leaping out of my seat to get lengthy.
I’d fairly see an inside-and-up day or a niche under Monday’s low and a reclaim earlier than getting lengthy. I simply need just a little extra proof, contemplating the inventory’s buying and selling historical past.
An additional breakdown may land Zillow at its 200-week shifting common.
Prime Inventory Trades for Tomorrow No. 3: Coinbase (COIN)
The trading in cryptocurrencies has been much better lately and thus, it’s been significantly better for Coinbase (NASDAQ:COIN) as nicely.
On Friday, shares rocketed off its key shifting averages, however closed proper close to $280 resistance. Nevertheless, Monday’s session had sturdy follow-through, because the inventory now challenges the third-quarter excessive at $294.
If COIN inventory can clear $294 it opens the door to the 50% and 61.8% retracements.
If it’s rejected from the $294 to $300 space, let’s see if $280 can act as assist till the 10-day shifting common catches up. If not, it may put the $255 to $260 space again in play.
Prime Trades for Tomorrow No. 4: Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) powered greater by means of the summer time, however stumbled in September.
Final week, Superior Micro Gadgets (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 inventory closes above $220, let’s see if the inventory can problem $230 resistance. We may have a minor pullback sooner or later on this one, however a breakout over $230 may arrange a check of the $250 degree.
A break under $205.11 — final week’s low — places Nvidia under all of its short- and intermediate-term developments and is a really dangerous search for bulls within the quick time period. Extra conservative bulls won’t need to see shares lose the 10-week and 50-day shifting averages.
On the date of publication, Bret Kenwell held a protracted place in NVDA. The opinions expressed on this article are these of the author, topic to the InvestorPlace.com Publishing Guidelines.
Bret Kenwell is the supervisor and creator of Future Blue Chips and is on Twitter @BretKenwell.
