Welcome to Momentum Monday, where we dive into the latest market trends and potential trading opportunities. In this edition, we will analyze the recent performance of the broad stock market indexes, highlight key economic data releases, and discuss technical trade setups in stocks with strong potential.
Last week, the stock market experienced increased volatility due to rising tensions in the Middle East. However, there are signs that the Nasdaq 100, in particular, may have found support at its four-month consolidation lows. This could indicate a potential bullish reversal.
Furthermore, the upcoming earnings reports from Mega Cap Technology companies such as Microsoft (MSFT), Alphabet (GOOGL), Amazon (AMZN), and Meta Platforms (META) could serve as bullish catalysts for the overall market.
Additionally, it is crucial to keep an eye on the major economic data releases scheduled for this week. The Q3 GDP and Initial Jobless Claims on Thursday and PCE inflation data on Friday will be critical in shaping the Federal Reserve’s interest rate policy.
Technical Trade Setups
Let’s explore two compelling technical trade setups:
1. Vertiv (VRT)
Vertiv, a digital infrastructure company, currently holds a Zacks Rank #1 (Strong Buy) rating. It has an intriguing technical setup, with the potential for a bullish breakout if it can trade above the $40 level this week. This breakout could lead to a strong end-of-year performance.
2. Coinbase (COIN)
Bitcoin has quietly rallied 100% year-to-date, and Coinbase, a leading cryptocurrency exchange, has seen a similar performance. With a Zacks Rank #2 (Buy) rating and a convincing technical setup, Coinbase could experience a breakout if the stock can trade above the $77.50 level.
While these technical trade setups offer significant potential, it’s important to remember that even the best setups can fail. Traders should always stick to their trading plan and prioritize risk management. Understanding the maximum amount of money that can be lost on a trade and respecting stop losses is crucial.
Wishing you the best of luck this week as you navigate the market!
Disclaimer: The views and opinions expressed herein are solely those of the author and do not necessarily reflect the views of Nasdaq, Inc.