Stock Market

It was an up-and-down session that’s now mostly flat for the S&P 500. Now, let’s look at a few top stock trades for next week, after this holiday-shortened stretch. 

Top Stock Trades for Monday No. 1: Boeing (BA)

Four weeks ago, Boeing (NYSE:BA) tested down into its 21-week moving average, then caught a sharp bounce off that level. Since then, we’ve had back-to-back tight-ranged weeks.

On the plus side, earnings are out of the way and Boeing continues to hold over the 10-week moving average. Moving nicely on Friday, bulls will be looking for Boeing to give us a two-times weekly-up rotation by clearing the highs from the prior two weeks.

If it can do that, as well as hurdle the 50% retracement, the $234 level could be in play, followed by the December high near $244. Above that puts the 61.8% retracement on the table near $250.

On the downside, a break of the 10-week moving average puts the 21-week moving average on deck, followed by the $188 to $190 area.

Top Stock Trades for Monday No. 2: Deere (DE)

Man, what else can we say about Deere (NYSE:DE) at this point? The stock looks like a high-flying tech holding more than an industrial/agriculture company. That said, it does have some tech components to the business model.

Regardless, this stock has been moving straight up for months now. Each dip to the 10-week moving average — including this week — has been bought aggressively by the bulls.

The institutional support is robust with this one, which would have me crossing it off my “short list” in a hurry. Now at the three-times range extension and new record highs though, and I’m in no hurry to chase this one either.

Above $335, and a run to $350 is possible, then $380. A break of the 10-week moving average will eventually happen, putting the 21-week moving average in play. 

Top Stock Trades for Monday No. 3: Litecoin (LTC-USD)

Tuesday was Bitcoin (CCC:BTC-USD). Wednesday was Bitcoin Cash (CCC:BCH-USD). Thursday was Etherium (CCC:ETH-USD). Now let’s look at Litecoin (CCC:LTC-USD) as we wrap up the crypto week and as bitcoin hits a $1 trillion market capitalization today.

Litecoin had a pretty rough correction from its 2019 high at $146.95 down to its 2020 low at $24.85. However, it’s been on fire over the last few months.

Shares ripped up through the prior 2019 high, then consolidated its gains by finding support at the 10-week moving average. Once that consolidation ended though, it was off to the races again.

Now pushing through the 161.8% extension, let’s see if Litecoin can push up to $250, then $269.50, as the two-times range extension comes into play near the latter.

On the downside, I would love to see the 161.8% extension act as support, as well as $200. Below puts this week’s low in play near $186.50.

Top Trades for Monday No. 4: Royal Caribbean (RCL)

Last but not least is Royal Caribbean (NYSE:RCL). Up almost 17% this week, shares are rallying into earnings scheduled for Monday.

This one has been on fire, reclaiming its 10-day, 21-day, 50-day and 100-day moving averages amid the four-day rally. It doesn’t look like much after such a wide trading range over the last year, but it’s a nice run. Ahead of earnings does make it a little tricky, though.

Over the 50% retracement and its short-term moving averages puts the bulls in control for the moment. On a bullish earnings reaction, let’s see if shares can clear the recent high near $85. Above puts the 61.8% retracement in play, then the $100 mark.

On a bearish reaction, see if RCL stock holds the 100-day moving average — the lowest of the four listed above. Below uptrend support (blue line) and the 38.2% retracement and 200-day moving average are in play. 

On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in any of the securities mentioned in this article.

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