After back-to-back rebound days with strong breadth, bulls are trying to sort out whether they have enough energy to drive the indices to new all-time highs. As earnings season really gets underway, let’s look at a few top stock trades for Friday.
Top Stock Trades for Tomorrow No. 1: Dogecoin (DOGE-USD)
Cryptocurrencies were on the edge earlier this week — again. However, the group caught a bid on Wednesday on optimism that Elon Musk, Cathie Wood and Jack Dorsey would say enough encouraging things at “The B Word” conference to give Bitcoin (CCC:BTC-USD) a boost.
And it did, at least for the day. The question now is, will it be enough to avoid a break to new lows?
Dogecoin (CCC:DOGE-USD) has been struggling to hold its 200-day moving average, but has been holding its weekly VWAP measure. While it popped on Wednesday, Dogecoin is now struggling to reclaim its key moving averages.
It must reclaim the 10-day and 21-day moving averages. If it can, it opens the door to the 10-week and 50-day moving averages and the 23 to 25 cent area.
On the downside, keep an eye on the 16 cent level. This mark held as support this week, but if it breaks, it could open up significant downside. Remember, Dogecoin is still quite speculative in the space, which is engulfed in a bear market at the moment.
Top Stock Trades for Tomorrow No. 2: Intel (INTC)
Intel (NASDAQ:INTC) reported earnings after the close today, and bulls are hoping it can turn around the stock’s woes. While Intel came roaring into the year, shares were hammered in April on earnings.
For now, the 50-week moving average is holding as support, as the 10-week moving average is squeezing Intel lower. Furthermore, $54 is acting as support, while $58 is acting as resistance.
However, the setup is pretty simple because of these ranges and well-defined support and resistance marks.
On a bullish reaction, look for a move above (and more importantly, a close above) $58 and the 10-week moving average. That opens the door to the 21-week moving average, then potentially $60-plus, all the way up to $64.
On the downside, though, a close below $54 puts the 200-week and 50-month moving averages in play.
Top Stock Trades for Tomorrow No. 3: Twitter (TWTR)
After a quick dip to the 10-week moving average, shares are powering higher and recently reclaimed the 10-day and 21-day moving averages. On a bullish post-earnings reaction, I want to see a close over $72.
That will also be necessary in order to stop Twitter’s current trend of lower highs. If it can really pop, $75 to $80 could be on the table.
On the downside, keep an eye on the 10-week moving average and the $64 to $65 area. Below these zones puts the 50-day moving average on the table.
Top Trades for Tomorrow No. 4: Cleveland-Cliffs (CLF)
Cleveland-Cliffs (NYSE:CLF) has been attracting a lot of attention lately from traders. Understandably so, as this low-priced stock has been making a number of big moves in both directions.
Notice how the 21-week moving average continues to guide the stock higher, along with uptrend support. At the same time, CLF stock has a downtrend mark in play as it does have a lower high near $23.50.
Okay, so where does that leave us now?
Shares threatened to break below the 21-week moving average, but it held as firm support. Now let’s see if CLF stock can reclaim the 10-day, 21-day and 50-day moving averages, as well as uptrend support. If it can, $23 could be in play, followed by $23.50, then $25.
If the stock gets rejected, the 21-week moving average is back in play. Below the July lows puts $17.50 on the table.
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.