Stocks turned lower at the open, but quickly regained their footing and rallied notably on the day. That said, let’s look at a few top stock trades ahead of Tuesday’s trading session.
Top Stock Trades for Tomorrow No. 1: Amazon (AMZN)
Amazon (NASDAQ:AMZN) was initially hit hard in March, along with the rest of the market. However, it didn’t take long for the stock to gain upward momentum, as investors recognized the company’s increase in demand.
Earlier this month, Amazon stock broke out over $2,500. A few sessions later, this mark acted as support before Amazon went on to new highs. It was a notably bullish development, although shares seem to be losing momentum once again.
Currently holding up above the 20-day moving average and uptrend support (blue line), investors should watch this area closely.
If Amazon loses these marks, shares could return to $2,500 and the 50-day moving average. If it holds, though, $2,800 is back in play.
Top Stock Trades for Tomorrow No. 2: Boeing (BA)
Boeing (NYSE:BA) shares caught fire, rallying nearly 14.5% on Monday. The move comes after the company will begin test flights for the 737 MAX.
Shares are breaking over downtrend resistance (blue line), which was squeezing the stock lower from $235 down to $170. As of now, Boeing is also working on reclaiming its 100-day moving average.
If this move “sticks,” it puts the $200 level in play, which has been notable this month. Above that technically puts the 50% retracement in play, near $220, followed by the month’s high at $234.20.
A break of $170, however, and the 50-day moving average would be a bearish development in the stock.
Top Stock Trades for Tomorrow No. 3: Southwest Airlines (LUV)
The chart for Southwest Airlines (NYSE:LUV) looks quite similar to Boeing. Shares spiked from mid-May to early June before settling back down.
Shares pulled back to the 50-day moving average, found support, and are now rallying hard on Monday — ending the day up 9.6%. The stock is also breaking above downtrend resistance.
Unlike Boeing, though, Southwest still has a ways to go — almost 10% higher — before hitting the 100-day moving average. And above that puts the $40 to $42 zone in play.
On the downside, however, see that $31.50 and the 50-day moving average hold as support. Below puts a gap-fill in play down to $30.
Top Trades for Tomorrow No. 4: Micron (MU)
Micron (NASDAQ:MU) reported earnings after the close on Monday. The stock has been trading well, but not aggressively bullish for the last few months. In other words, it has cautiously climbed higher, but has not exploded higher in the way we’ve seen some tech stocks climb.
Shares continue to cluster around its major moving averages, while uptrend support guides Micron stock up toward $50. It did have a short-lived rally above this mark earlier in the month, although it could not sustain over $52 or $50.
On a bullish reaction, I would like to see Micron clear $52. That would put the 78.6% retracement and June resistance near $55 in play. Above that and $60 resistance is possible.
On the downside, though, look for a close below $47. That puts Micron below all of its major daily moving averages and uptrend support, putting lower prices in play.
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.