After a wild end to Friday’s motion, Monday was a bit extra calm as buyers tried to type out the mess from Archegos Capital. With that in thoughts, let’s take a look at a couple of high inventory trades, beginning with a cryptocurrency.
High 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 a better excessive, nevertheless it’s trying significantly better.
Ethereum burst by the 10-day, 21-day and 50-day shifting averages with Monday’s rally. From right here, I wish to see it take out the March excessive close to $1,943. If we get a couple of extra days beneath that mark, bulls could have the potential for an inside-and-up month-to-month rotation.
Will probably be arduous to not be lengthy in that state of affairs — at the least for crypto bulls.
Regulate that downtrend resistance mark (blue line). That would hold a lid on the crypto and if it begins to lose momentum, it may put the 10-week shifting common again in play.
High Inventory Trades for Tomorrow No. 2: Morgan Stanley (MS)
Morgan Stanley (NYSE:MS) was one of many companies that obtained offered off on Monday morning on account of that Archegos Capital information.
Nonetheless, up to now the inventory is holding its 50-day and 10-week shifting averages. It’s additionally holding that $76 degree, which was resistance in January and help 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 shifting 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 doable decline right down to its 21-week and 100-day shifting averages.
High Inventory Trades for Tomorrow No. 3: Roku (ROKU)
The promoting stress 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, often represents a long term shopping for alternative.
Sadly on this case, there’s no rapid help 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 might be in play. There the inventory finds its 200-day shifting common and the gap-fill degree from November.
If Roku inventory turns greater earlier than that, search for it to reclaim the 10-day shifting common. Till it does that, bulls can’t reclaim the pattern.
High Trades for Tomorrow No. 4: DraftKings (DKNG)
DraftKings (NASDAQ:DKNG) has been a pacesetter amongst development shares. Nonetheless, it could possibly’t escape among the promoting stress.
Whereas the inventory had a pleasant bounce from the 10-week and 50-day shifting averages on Friday, bulls didn’t have the identical luck on Monday because the inventory knifed proper by these two measures.
Now on the decline, let’s see if the $56 degree acts as help, together with the 100-day shifting common. Under that places $53 in play, then the 200-day shifting common.
On the upside, nonetheless, 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.