After a wild end to Friday’s motion, Monday was a bit extra calm as buyers tried to kind out the mess from Archegos Capital. With that in thoughts, let’s have a look at a number of prime inventory trades, beginning with a cryptocurrency.
Prime Inventory Trades for Tomorrow No. 1: Ethereum (ETH-USD)
Ethereum (CCC:ETH-USD) costs erupted on Monday, up greater than 8%. The crypto isn’t essentially out of the woods but, because it hasn’t made the next excessive, but it surely’s trying significantly better.
Ethereum burst by means of the 10-day, 21-day and 50-day transferring averages with Monday’s rally. From right here, I need to see it take out the March excessive close to $1,943. If we get a number of extra days beneath that mark, bulls could have the potential for an inside-and-up month-to-month rotation.
It will likely be laborious to not be lengthy in that state of affairs — at the very least for crypto bulls.
Keep watch over that downtrend resistance mark (blue line). That might hold a lid on the crypto and if it begins to lose momentum, it might put the 10-week transferring common again in play.
Prime Inventory Trades for Tomorrow No. 2: Morgan Stanley (MS)
Morgan Stanley (NYSE:MS) was one of many companies that received bought off on Monday morning attributable to that Archegos Capital information.
Nonetheless, thus far the inventory is holding its 50-day and 10-week transferring averages. It’s additionally holding that $76 degree, which was resistance in January and assist in late February.
For bulls, Monday’s low now turns into key. Above and a bounce remains to be in play, doubtlessly as much as the gap-fill degree close to $80 and the 21-day transferring common. Above the latter and $85-plus is in play.
On the draw back, although, an in depth beneath Monday’s low opens the inventory as much as a potential decline right down to its 21-week and 100-day transferring averages.
Prime Inventory Trades for Tomorrow No. 3: Roku (ROKU)
The promoting strain is lastly beginning to hit Roku (NASDAQ:ROKU). At Friday and Monday’s lows, the inventory was down about 40% from the highs — which to me, normally represents a long run shopping for alternative.
Sadly on this case, there’s no instant assist close by, though that will not matter a lot to basic buyers. Nonetheless, it’s clear that Roku is struggling to regain the $316 degree, though it’s holding Friday’s low for now.
Ought to the inventory take out these lows, a flush right down to the $260 to $265 space may very well be in play. There the inventory finds its 200-day transferring common and the gap-fill degree from November.
If Roku inventory turns increased earlier than that, search for it to reclaim the 10-day transferring common. Till it does that, bulls can’t reclaim the pattern.
Prime Trades for Tomorrow No. 4: DraftKings (DKNG)
DraftKings (NASDAQ:DKNG) has been a pacesetter amongst development shares. Nonetheless, it may well’t escape a number of the promoting strain.
Whereas the inventory had a pleasant bounce from the 10-week and 50-day transferring averages on Friday, bulls didn’t have the identical luck on Monday because the inventory knifed proper by means of these two measures.
Now on the decline, let’s see if the $56 degree acts as assist, together with the 100-day transferring common. Beneath that places $53 in play, then the 200-day transferring common.
On the upside, nevertheless, shares have to reclaim the 50-day, then $64. Above that opens the door to the present excessive, then finally a push up towards the 161.8% extension.
On the date of publication, Bret Kenwell held an extended place in ROKU and DKNG.