The market enjoyed a nice rally on Tuesday, after a volatile Monday. With that in mind, let’s look at a few top stock trades as we enter mid-week.
Top Stock Trades for Tomorrow No. 1: Snap (SNAP)
Snap (NYSE:SNAP) continues to trade quite well, with shares flirting with a weekly-up rotation and hitting their highest point in about two months.
Now bulls will need to see if the stock can gain momentum over this area. The stock gave us a strong bounce of the 20-day moving average on Monday and after a quick two-day rally, it’s got investors looking for more.
If Snap can close over last week’s high (at $25.22), it opens the door to the $26 to $27 area. That’s where the stock ran out of steam in July.
On the downside, Snap could actually retreat quite a bit without looking unhealthy, technically speaking. Specifically, so long as it stays above $22.75, it’s okay. Nearby it has the 20-day and 50-day moving averages, as well as uptrend support (blue line).
A close below could put this month’s low in play at $21.44, followed by range support near $21.
Top Stock Trades for Tomorrow No. 2: Pinterest (PINS)
In late July, Pinterest (NYSE:PINS) shares gapped higher and have been range-bound between $32 and $38 for months.
Finally, shares are pushing through resistance, as the stock makes new all-time highs over $39.64, the high from earlier this month. If shares can close above $40, look for a test of the two-times range at $44.40.
Above that and longer-term investors can target $50, followed by the 261.8% at $55.
On the downside, look for a check-back to $38. If this former resistance level acts as support, it could be a great buying opportunity. Below the 20-day moving average puts range support back in play along with the 50-day moving average.
Top Stock Trades for Tomorrow No. 3: Carvana (CVNA)
Carvana (NYSE:CVNA) erupted on earnings, climbing more than 34% at the time of this writing.
Shares had been in a steady downtrend, easily knifing through the 20-day and 50-day moving averages. With Tuesday’s rally, CVNA gapped above both measures and seems to be having an easy time with resistance between $320 and $330.
Now, the key here is for Carvana to stick the landing. In other words, it can’t peter out and fade significantly from these levels. If it does, it cements this area as resistance. If it can push through though, it opens up more upside.
Specifically, it will put the 261.8% extension in play up at $265.82. I don’t want to see shares close below the two-times range near $208.
Top Stock Trades for Tomorrow No. 4: Nio (NIO)
Nio (NYSE:NIO) continues to set up very nicely, even with Tesla (NASDAQ:TSLA) stealing the EV-spotlight with its Battery Day event.
The stock continues to hold the 20-day moving average, as support and is giving nimble traders a daily-up rotation by moving above the prior session’s high.
What swing traders are looking for now is a weekly-up rotation through $20.25. If Nio can do that, it will surely have investors looking for another run toward $21 resistance and the current highs.
Above $21 could trigger another breakout. Below this week’s low at $17.66 and bulls lose almost all short-term momentum.
Top Stock Trades for Tomorrow No. 5: General Mills (GIS)
General Mills (NYSE:GIS) will report earnings on Wednesday before the open.
After spending nearly two months grinding against range resistance at $65, General Mills shares came crashing down earlier this month. The stock paused momentarily near $59, but lost that level too.
Ultimately, the 200-day moving average has acted as support, but bulls have lacked the pre-earnings confidence necessary for shares to reclaim $59.
On a bullish reaction, I would like to see GIS reclaim $59 and preferably, $63. Above the latter not only puts General Mills above resistance from May and June, but also back above the 20-day and 50-day moving averages.
If shares gap up to this area, investors must be mindful of a possible post-earnings fade. Above $63 puts $65 resistance back in play.
On the downside, bulls do not want to see General Mills close below the 200-day moving average and this week’s low at $56.92. If it does, it could put the $53 to $54 area on the table.
On the date of publication, Bret Kenwell held a long position in NIO and PINS.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.