The stock market galloped higher on Tuesday, as earnings season gets underway. With that in mind, here’s a look at a few top stock trades.
Top Stock Trades for Tomorrow No. 1: Bank of America (BAC)
We’re seeing a disappointing pattern play out in the banks, as they fail to garner upside momentum. Bank of America (NYSE:BAC) will try to break that trend when it reports earnings on Wednesday before the open.
Should bulls keep control, see that BofA reclaims the $25.50 area. There it will find the 200-week and 10-week moving averages, as well as prior range support. Above this mark, and Bank of America stock could run to $27-plus.
If shares continue to pull back, I want to see BAC stock find support between $21 to $22. Below opens it up to a retest of the $19 low.
Top Stock Trades for Tomorrow No. 2: Goldman Sachs (GS)
Goldman Sachs (NYSE:GS) isn’t all that different. Shares have been enjoying a strong rebound, although the stock is beginning to find some sellers. Now it’s time for bulls to show up and push shares higher or get out of the way and give the bears a chance to do their thing.
On a move higher, I first want to see if GS can reclaim the declining 10-week moving average, which is currently acting as resistance. Above that puts $190 in play, a former support level from the second half of 2019 through the first quarter of 2020.
Above that puts the 50-week and 200-week moving averages in play, between $205 and $210. On a decline, let’s see if the 2018 low near $148 holds as support. If that fails to buoy the stock, the lows near $131 are possible.
Top Stock Trades for Tomorrow No. 3: Johnson & Johnson (JNJ)
Johnson & Johnson (NYSE:JNJ) stock caught a boost on Tuesday, following better-than-expected quarterly results.
Ahead of the print, shares were rallying but struggling to push through resistance near $142.50. The quarterly result would either push the stock through resistance or cause it to fail and retreat.
For now, the stock is pushing through resistance, trading up into the mid-$140s. From here, investors must see that JNJ now holds former resistance level as support. Below puts the 200-day moving in play. On the upside, see if J&J can rally up to $150 and push up to its former 52-week highs.
Top Trades for Tomorrow No. 4: Shopify (SHOP)
Man, where did the rally in Shopify (NASDAQ:SHOP) come from? Earlier this month it looked like a retest of the March low could be in play, but that wasn’t the case. Instead, shares ricocheted higher, allowing an uptrend support line to form (blue line).
Shares are now knocking on the door of $500, with $510 being a rather notable level on the chart. Above that and technically speaking, $550 is possible.
On a pullback, see if the stock holds $450 and the 50-day moving average as support. Below puts the 200-day moving average and uptrend support back in play.
Top Trades for Tomorrow No. 5: Virgin Galactic (SPCE)
It’s good to see Virgin Galactic (NYSE:SPCE) find its footing after a painful correction off its February high. However, the stock hasn’t even retraced 38.2% of its decline, whereas the Nasdaq Composite has impressively retraced more than 61.8% of its correction.
In any regard, we’re also seeing SPCE run into some resistance, in the form of $20 and the 50-day moving average. Above these two marks opens the door to a larger push higher, perhaps up to $24-plus. However, if the stock fails, a pullback could ensue.
Support could come into play near $18, however, I’d rather look to the 100-day moving average and uptrend support (blue line) as a potentially better buy zone with a better risk/reward profile.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, he did not hold a position in any of the aforementioned securities.