After a strong end to final week, shares opened decrease on Monday. Nonetheless, they shortly 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 this point, it’s the latter in relation to Dogecoin (CCC:DOGE-USD). The cryptocurrency began off the day robust, rallying to a excessive of 27.24 cents.
The transfer got here off the 200-day transferring common, highlighting that this transferring common nonetheless stays resistance simply because it was earlier this month. Downtrend resistance (blue line) continues to be in play as effectively, despite the fact that Dogecoin briefly pushed by means of this mark in the present day.
The failed breakout is discouraging for bulls, however there may be nonetheless promise. As an illustration, Dogecoin continues to be holding up across the 25 cent mark, together with the 10-day, 21-day and 50-day transferring common, in addition to the every day VWAP measure.
Beneath all of those ranges might put 20 cents again in play.
On the upside, nonetheless, a transfer over the 200-day transferring common opens the door to 30 cents or larger.
Prime Inventory Trades for Tomorrow No. 2: Zillow (Z)
Zillow (NASDAQ:Z) has been caught in a nasty downtrend. It surged larger 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 continues to be holding the $85 mark. Truthfully, I’d have most popular that the inventory broke under this measure then reclaimed it, giving us an extended place with measured draw back danger. That didn’t occur, and that’s OK.
Second, there’s a ton of quantity on the day and the inventory continues 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 may give us a clue in regards to the scenario.
It is a robust one. Aggressive bulls may be lengthy in opposition to this month’s low and search for a rebound larger. However as a result of we’re in a downtrend, I’m not leaping out of my seat to get lengthy.
I’d quite see an inside-and-up day or a spot under Monday’s low and a reclaim earlier than getting lengthy. I simply need a bit extra proof, contemplating the inventory’s buying and selling historical past.
An extra breakdown might land Zillow at its 200-week transferring common.
Prime Inventory Trades for Tomorrow No. 3: Coinbase (COIN)
The trading in cryptocurrencies has been much better lately and thus, it’s been a lot better for Coinbase (NASDAQ:COIN) as effectively.
On Friday, shares rocketed off its key transferring averages, however closed proper close to $280 resistance. Nonetheless, Monday’s session had robust 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 transferring common catches up. If not, it might put the $255 to $260 space again in play.
Prime Trades for Tomorrow No. 4: Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) powered larger by means of the summer season, however stumbled in September.
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 might have a minor pullback sooner or later on this one, however a breakout over $230 might arrange a take a look at of the $250 degree.
A break under $205.11 — final week’s low — places Nvidia under all of its short- and intermediate-term tendencies and is a really unhealthy search for bulls within the brief time period. Extra conservative bulls won’t need to see shares lose the 10-week and 50-day transferring averages.
On the date of publication, Bret Kenwell held an extended place in NVDA. The opinions expressed on this article are these of the author, topic to the InvestorPlace.com Publishing Guidelines.