Bears were looking for the Federal Reserve’s Jackson Hole Symposium to sink stocks from the highs. Some were well-known traders too. But in the end, stocks powered to new all-time highs on the day. Let’s look at a few top stock trades going into next week.
Top Stock Trades for Monday No. 1: Ethereum
Ethereum (CCC:ETH-USD) has been on a tear. In July, it looked like Ether, Bitcoin (CCC:BTC-USD) and the whole group was on the verge of a deep pullback.
But then these cryptos found their footing and gave us a sharp reversal. From that low, Ethereum is up nearly 90%. How much upside could be left?
After flirting with a breakdown for the last few days, Ethereum is reclaiming the 21-day and 10-day moving averages. As long as it can maintain above these two measures, the $3,330 level is on the table.
Below this week’s low (at $3,060) and investors can look for a test of the $2,900 to $3,000 area. If it doesn’t hold as support, the 10-week and 50-day moving averages are in play.
On the upside, a move over $3,300 and the 61.8% retracement puts the 78.6% retracement on the table, near $3,805. Above that and $4,000-plus is on the table.
Top Stock Trades for Monday No. 2: BlackBerry
BlackBerry (NYSE:BB) is starting to get some action again, as meme stocks regain traction. Will the momentum last, or is it only fleeting?
On the plus side, BlackBerry is back above all of its major moving averages at the moment. So long as that remains the case, it’s hard to be overly bearish. That said, does that mean we should be bullish?
I really would like to see a move over the $12 to $12.15 area. That would make me feel better about a potential squeeze into the teens.
If the stock loses the 200-day moving average, $9.30 to $9.50 may very well be on the table.
Top Stock Trades for Monday No. 3: Lucid Motors
Late last month, I detailed the troubling setup in Lordstown Motors (NASDAQ:RIDE). Now Lucid Motors (NASDAQ:LCID) could be giving us something similar as it starts to roll over.
Like Lordstown at the time, Lucid is putting in a series of lower highs while leaning on support. It’s totally possible that support holds and we get a bounce.
However, with shares tipping below all of its major daily moving averages, it has a lot of hurdles ahead of it. If by some chance it does clear these measures, we could see a powerful squeeze.
Short of that though, keep an eye on the 200-day moving average. That’s the level the stock most recently lost, as the stock now leans on the $21 level. Below $20 and $17.50 could come in a hurry.
Top Stock Trades for Monday No. 4: Big Lots
Like other cheap retail plays, Big Lots (NYSE:BIG) is falling after reporting earnings. However, it’s being bid up strong off the lows.
Here’s the deal, though. I need to see BIG reclaim $55 to trust it. That means a full gap-fill, but more importantly, over a key level on the chart. Above that and it will have to contend with the 10-day and 21-day moving averages.
Above that puts $60 in play.
On the downside, watch the post-earnings low. Below that puts the 21-month moving average on the table, followed by $42.50.
Right here, right now and BIG is in no man’s land.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. 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.