4 main Monday stock trades: Ether, DWAC, DKNG, SNAP

0

InvestorPlace – Stock News, Stock Tips & Trading Tips

After a massive move, the stock market took a little break on Friday, but that didn’t stop the S&P 500 for having reached a new record that day. Let’s take a look at some of the top stock trades for the next week.

Top Stock Transactions for Next Week # 1: Ethereum


Click to enlarge

Source: Graphic courtesy of TrendSpider

Ethereum (CCC:ETH-USD) and Bitcoin (CCC:BTC-USD) has driven the surge in cryptocurrencies this week, with the latter reaching all-time highs. Ether has come a hair’s breadth from its historic peaks.

The last time we checked on Ethereum we were looking for an increase of $ 3,800 and then over $ 4,000 to hit the highs. Who has played amazingly well. Now going back, I would like to see the $ 3,800 to $ 4,000 area act as support, as well as the 10 day moving average.

If he can do that, then the momentum will stay with the bulls and keep the $ 4,400 area on the table.

If this area fails as support, it opens the door to the 21 day moving average and the top of the “B” leg around $ 3,675.

Top Stock Transactions for Next Week # 2: Digital World Acquisition Corp

Main stock market transactions for DWAC
Click to enlarge

Source: Graphic courtesy of TrendSpider

Digital world acquisition company (NASDAQ:DWAC) is the latest PSPC to become a stock meme and garner tremendous momentum and interest from investors. Everyone loves an incredible gain, but we’ve already seen the DWAC rally 1.275% in two days.

How much more could he really stay here? Back below $ 100 now, many investors could stop. I’m not saying it’s a buy or a shorts. I’m just highlighting the levels.

Above $ 100, the 61.8% retracement of the entire range is in play, at $ 111. On top of that and he can squeeze higher again. Below $ 100, the 50% retracement is vulnerable, followed by $ 73 and the session low near $ 68. Below that and $ 50 or less are on the table.

Also, don’t be tempted by FOMO – afraid to run out – with this one. There’s nothing that forces you to swap the trending names no matter how popular they seem.

Top Stock Transactions for Next Week # 3: DraftKings

Main stock market transactions for DKNG
Click to enlarge

Source: Graphic courtesy of TrendSpider

DraftKings (NASDAQ:DKNG) plunges lower on Friday, falling below its recent consolidation zone. It’s not a great look for the bulls.

The stock is testing the uptrend support (represented by the horizontal blue line), a level that the bulls hope to hold as support. If it fails, it opens the door to the 21-month moving average, as well as the $ 41 to $ 42.50 area. This zone should be supported, based on previous withdrawals from DraftKings.

If there is a rebound, we should see the stock recover its recent short-term support near $ 48. A return above its short-term moving averages would put the $ 50.75 area back into play, potentially followed by the 50 and 200 day moving averages.

Top Stock Transactions for Next Week # 4: Snap

Daily Snap Stock Chart
Click to enlarge

Source: Graphic courtesy of TrendSpider

Last but not least is Break (NYSE:BREAK), which plunges more than 25% on Friday due to profits.

The stock had held the $ 70 level as support, but there was an unmet gap at $ 64.74. It bothered me a bit, but the stock was doing so well that it wasn’t something that worried me too much.

With the post-profit action that we have now, there is a whole other gap to be concerned about.

The stocks are sort of in no man’s land here. There are no real moving averages or past key levels to build on. If I had to pick a level, I would focus on the third quarter low at $ 57.50.

If SNAP can quickly recover this mark, aggressive bulls could be long over the post-earnings low. This only works if Snap finds its place soon. Otherwise, investors will have to wait for some sort of reversal or drop in prices.

If it’s the latter, I’m watching the $ 48- $ 50 area in that name.

At the time of publication, Bret Kenwell held a long position in SNAP. The opinions expressed in this article are those of the author, subject to InvestorPlace.com Publication guidelines.

Bret Kenwell is the director and author of Future Blue Chips and is on Twitter @BretKenwell.

The post office 4 main Monday stock trades: Ether, DWAC, DKNG, SNAP appeared first on Investor place.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Share.

Comments are closed.