Let’s look at a few top stock trades going into the final trading day of 2021 and as we head into 2022.
Top Stock Trades for Tomorrow No. 1: Ethereum (ETH-USD)
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Bitcoin (CCC:BTC-USD) prices have been teetering over the past few days, but haven’t broken down or repaired the damage yet. It’s sort of just floating along and Ethereum (CCC:ETH-USD) is in a similar position.
The crypto dipped to the $3,650 to $3,675 area, following four straight daily declines.
From here, we have a two-day low to measure against around $3,580. A break of this low very well could put the November low in play near $3,327, along with the 200-day moving average.
On the upside, let’s see if Ethereum can push up to the declining 10-day and 21-day moving averages. Over $4,000 and the 50-day is in play.
Keep in mind, Ethereum is in a downtrend. We will need a higher high to form in order to break that downtrend.
Top Stock Trades for Tomorrow No. 2: Nio (NIO)
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Nio (NYSE:NIO) is having a great day, up 15% so far on the day. This one gave us an incredible bullish reversal trade, which I tweeted about earlier.
In one quick swoop, the stock rallied up through all of my short-term upside targets, with the last one being the 21-day moving average.
The reversal came to life after Nio undercut the recent low at $27.79, made a new low and then reclaimed that level. Up above $30 now, let’s see if the stock can stay above this mark going forward, along with the 10-day moving average.
On the upside, let’s see if Nio stock can rally to $35 and the backside of prior uptrend support (blue line). Above that puts the 50-day moving average in play.
Top Stock Trades for Tomorrow No. 3: Biogen (BIIB)
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On Wednesday, Biogen (NASDAQ:BIIB) rallied 12.5% at the highs and closed higher by 9.5%. The recent decline before that rally took Biogen stock back down to its lowest levels since last year’s spike off the $223 area.
With the rejection from the 50-day and 10-week moving averages, Biogen stock hasn’t proven that it has its bullish momentum back.
Value buyers may find it attractive down in the $215 to $225 area. For other buyers, though, they will want an undercut of this area and a reclaim or a resumption rally to the upside. If it’s the latter, let’s see if BIIB stock can clear $250 and the 10-week moving average.
If it can, this week’s high is in play near $265.50. Above that and the declining 21-week moving average is in play.
One other alternative would be a potential inside week next week (given this week’s large range). That could set us up for an inside-and-up weekly rotation in the first week of January.
Top Trades for Tomorrow No. 4: Alibaba (BABA)
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Alibaba (NYSE:BABA) has been beaten and battered all year. Shares are down almost 50% so far in 2021 despite today’s 9% rally.
However, there is a potentially attractive setup on the long-term charts. I’m using the monthly chart to illustrate the setup. It shows Alibaba bouncing off the $110 to $112 breakout level from several years ago.
That’s after falling in 10 out of the last 14 months and in five of the last six months. For the latter stretch, Alibaba declined by a doubled-digits percentage in four of those five down months (and that was true for all five months until today’s big rally took December out of the mix).
So what am I looking for?
We have the nice hammer off the recent low — at $108.70 — and if we can get a monthly-up rotation over $129.50 in January, bulls have their entry.
Keep in mind the scale of this trade. We’re using a monthly chart and thus, we’re not playing it for just a few days. We are looking for a longer-term bounce in Alibaba should this setup play out.
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.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
