Equities tip-toed higher on Monday, as investors turn their attention to a full week of trading. With that in mind, let’s look at a few top stock trades for Tuesday.
Top Stock Trades for Tomorrow No. 1: Apple (AAPL)
Apple (NASDAQ:AAPL) continues to grind higher amid a steep uptrend (blue line), as the stock now presses into notable resistance. It’s the same resistance level that the stock failed to penetrate in January and February.
If AAPL can break out over this zone, it could put a rally up the $350 area in play. At the very least, a move over $325 resistance will likely put new all-time highs in play.
A break of uptrend support is not necessarily the end of the run, but it may let some air come out of Apple and put the 20-day moving average in play. Below that and the $300 to $305 area will be on watch.
Apple is an important one to watch, not just because it’s one of the largest stocks in the market, but because it plays such an important psychological role.
Top Stock Trades for Tomorrow No. 2: Zoom Video (ZM)
Zoom Video (NASDAQ:ZM) is breaking out to new highs, with earnings on deck after the close on Tuesday. The move over $180 is beautiful; it’s swift, clean and occurring on solid volume.
Should shares pull back ahead of or after earnings, investors will want to see this $180 zone hold as support. If it can, bulls remain in control. Below puts uptrend support (blue line) in play, followed by the 50-day moving average.
On a continued rally, look to see if ZM stock can hold up over $200.
Top Stock Trades for Tomorrow No. 3: CrowdStrike (CRWD)
CrowdStrike (NASDAQ:CRWD) made a fantastic move on Friday, climbing more than 10% to new 2020 highs.
Adding another 8% to the gain on Monday, and CrowdStrike bulls are really in control. Shares will undoubtedly gun for $100, although it’s no guarantee they will get there. If CRWD does, it puts the all-time high at $101.88 in play.
It will also put $103.17 in play, which is a two-times extension of the 2020 range. Above that and $118 may be a reasonable upside target, which is the 123.6% extension for the full range.
On a pullback, investors will want to see $80 and the 20-day moving average hold as support.
Top Trades for Tomorrow No. 4: Pfizer (PFE)
Pfizer (NYSE:PFE) was setting up for a really nice potential breakout. Unlike the beautiful breakout we had in ZM, we have a wicked break down in Pfizer.
Shares plunged 7% at one point, dropping to the 50-day and 200-day moving averages. Despite this tremendous drop — gapping below the 20-day moving average and uptrend support (blue line) — investors have a solid setup.
With the 50-day and 200-day moving averages holding as support, bulls have a decent risk/reward setup.
Either PFE stock will hold these levels and rally back into the $37-plus area. Or it will move lower and take out Monday’s low at $34.91. That potentially puts a downside area of $32 to $32.50 in play.
To keep it simple: look for a move above or below Monday’s range.
Top Trades for Tomorrow No. 5: Blue Apron (APRN)
Blue Apron (NYSE:APRN) continues to move nicely, one of the few reverse-split stocks that has sidestepped obliteration for the time being.
Shares burst higher by more than 29% on Monday, sending shares through the 50-day moving average and downtrend resistance (purple line). It also propelled it through the $9 mark.
I want to see if APRN can get up to $14 — and possibly higher. On the downside, I want to see the 50-day moving average hold as support.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long AAPL.