The jobs report crushed expectations, and after a strong report from Amazon (NASDAQ:AMZN), we got a powerful rally in the stock market on Friday. That helped make up for Thursday’s poor performance. So, with that in mind, let’s look at a few top stock trades for next week.
Top Stock Trades for Monday No. 1: Bitcoin (BTC-USD)
Interestingly, I believe Bitcoin helped fuel Friday’s rally in tech and “risk-on” assets.
Now roaring back above $40,000, Bitcoin is above the “flash crash” low in December and into a key area. If it can continue higher, I want to see Bitcoin test into the declining 50-day moving average and the weekly VWAP measure.
Over $45,000 puts the 200-day and potentially $50,000 in play.
On the downside, though, let’s see if the 10-day and 21-day moving averages can act as support. If they do, that’s indicative of healthy price action. If not and we break the recent low near $36,350, then we could see $35,000 again and retest last month’s low.
Moreover, a break of last month’s low could put the major support area near $30,000 in play.
Top Stock Trades for Monday No. 2: Ethereum (ETH-USD)
Like Bitcoin, Ethereum (CCC:ETH-USD) has come roaring back to life. It pushed through that notable $2,700 area and its 10-day and 21-day moving averages.
However, it’s running right into its weekly VWAP mark and has yet to reclaim its December “flash crash” low — unlike Bitcoin.
From here, I don’t want to see Ethereum lose $2,700, but I really don’t want to see it back below $2,500. If we do see that, then the January low could be on the table for another test.
On the upside, however, $3,250 and/or the declining 50-day moving average is the next area of interest to me. Above $3,350, and the 200-day is in play.
Top Stock Trades for Monday No. 3: Unity (U)
Unity (NYSE:U) is a great company, but the stock is a volatile mover with a high valuation. Still, I love it.
We have a double bottom off the $90 to $92 area. Shares have been struggling with this $110 area over the past two weeks, but if Unity can hurdle this point and reclaim the 21-day moving average, it will put $115 in play.
Admittedly, that’s just a $5 move, but this zone has proven significant. Above $115, and the 200-day is in play alongside the weekly VWAP near $124.
On a dip, though, a break of $100 could put $90 back in play. If buyers come back to growth stocks, Unity can fly.
Top Trades for Monday No. 4: Amazon (AMZN)
Amazon is Friday’s big man on campus. This stock is ripping on better-than-expected results, and boy did it need it.
Not only did it help kick the stock market into gear, but it saved it from a potentially brutal decline as it’s already been struggling for quite some time.
Amazon is now back in its $2,880 to $3,500 range. That said, it’s running into a key area, including the 50% retracement, the 21-month moving average, the declining 10-week moving average and several areas of prior resistance.
If it can regain this area, $3,350 is in play, which is the 21-week and 50-week moving averages, along with the 61.8% retracement. Below $3,175, and it may lose some steam.
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.