Main Monday stock trades (Bitcoin, SQ, CMI, RKT)

    09 May 2021

    The market ended the week on a high note. Let’s look at a few top stock trades for next week.

    No. 1: Bitcoin (BTC-USD)

    Source: Chart courtesy of TrendSpider

    While altcoins continue to soar, Bitcoin (CCC:BTC-USD ( has had trouble advancing.

    The cryptocurrency looks like it’s trying to set up for a move higher, although the $58,000 level continues to act as resistance. If Bitcoin can clear this level we could see a move over $60,000 in quick fashion. Over $60,000 puts the $65,000 area in play, then $67,600. On the downside, though, Bitcoin has a lot of notable moving averages close by. However, if it loses the 10-week moving average — thus losing all the others — we could see a retest of the $47,000 to $50,000 area.

    No. 2: Square (SQ)

    Square (NYSE:SQ) reported solid earnings, but growth stocks remain under pressure. As a result, we’re not seeing a robust move to the upside.

    In fact, Square is having a very difficult time reclaiming some of key moving averages.

    However, over the key $244 mark and that outlook changes. Above that level, and $250 is possible, along with a test of the 21-day moving average. Above those measures and $275 resistance could be on the table.

    On the downside, however, if Square takes out this week’s low at $216.70, then $200 and the 200-day moving average is possible.

    No. 3: Cummins (CMI)

    Notice five straight weeks of Cummins riding the 10-week moving average but not rotating higher. Then last week it closed at the lows and gave us a five-times weekly-down and monthly-down rotation.

    Buying the retest of the 21-week moving average and $250 breakout level was great. But now we’re seeing a six-times weekly-up and monthly-up rotation. A close over $266.50 puts $275 to $277 in play.

    No. 4: Rocket Companies (RKT)

    Last but not least, let’s look at Rocket Companies (NYSE:RKT ( This stock has been creamed, down more than 50% from the highs. In just the last two days, shares are down more than 20%.

    Breaking below $19.37 was an issue, as it opened the door to the $17.50 to $17.78 area. First, does RKT stock even test this area at all? Second, if it does and it breaks below it, can RKT stock reclaim these levels and/or the current low?

    If so, a reversal could be brewing and at least give longs a low to measure against. After all, there is a massive gap to fill on the upside.

    On the downside, a close below $17.50 with no reversal will thrust RKT stock into no man’s land.

    Leave a Reply

    Your email address will not be published. Required fields are marked *