After a strong trading day on Monday, investors used Tuesday as a way to digest the gains. Let’s look at a few top stock trades as we near mid-week.
Top Stock Trades for Tomorrow No. 1: Livongo (LVGO)
The only word that can describe Livongo’s (NASDAQ:LVGO) run at this point? Breathtaking.
Shares have surged over the past few months and did so again on Tuesday — rallying more than 20%. The move came on a strong dose of volume, too, of 15.5 million strong.
So, what now?
Obviously chasing the stock up here has its risks, as many investors may prefer to wait for a pullback. A dip down toward the $75 to $80 zone that is met with support could be a solid short-term buying opportunity.
Notice where Tuesday’s rally ran out of steam: right at the 261.8% extension near $95. If LVGO stock can clear this mark, first look to the $100 mark as the next upside target, followed by the 3-times range extension near $107.
Top Stock Trades for Tomorrow No. 2: Walmart (WMT)
Walmart (NYSE:WMT) shares erupted higher on Tuesday, tacking on nearly 7% on the day.
The stock continued to hold its 200-day moving average all through the month of June despite some lackluster price action.
Moreover, like LVGO, Walmart’s move comes on strong volume. It’s also propelling shares over the 50-day and 20-day moving averages. If it can hold above the $126 area, it puts the $132 range in play. Shares are not overbought, so if the stock can maintain momentum, there could certainly be upside left.
If it can’t hold the $126 level, though, look to see if the 50-day moving average holds as support. Bulls don’t want to see Walmart stock give up all of Tuesday’s gains.
Top Stock Trades for Tomorrow No. 3: AbbVie (ABBV)
Remember when we were looking at AbbVie (NYSE:ABBV) to make a nice move higher? Well, that has played out tremendously well, with shares briefly breaching $100 earlier in the day.
It’s been a slow, yet profitable rally over the past few months, but bulls have been rewarded. If the stock can clear and stay above $100, keep an eye on the 123.6% extension at $104.63, and potentially followed by the 138.2% extension up at $109.71.
On the downside, however, I want to see the prior 52-week high from February hold as support — along with the 20-day moving average. Below could put a larger correction back in play, putting the $88 to $90 area on the table.
Top Stock Trades for Tomorrow No. 4: Novavax (NVAX)
What can we say about Novavax (NASDAQ:NVAX) at this point? This stock was trading for less than $5 at one point in early January. Now? Shares just eclipsed $100. From low to high, the stock has seen a rally of more than 2,500% — this year.
As you can see on the chart, this stock tends to make very similar patterns. That is, a big spike that’s met with lower highs and an eventual breakout over downtrend resistance (blue lines).
If that pattern starts to play out again, traders make look for another pop to the upside. Below the $85 to $90 area may give investors some concerns though — and rightfully so. This zone was resistance last month, and many bulls would like to see it act as support — provided NVAX trades there.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret did not hold a position in any of the aforementioned securities.