Monday feels like the calm before the storm, as a number of big-name companies like Tesla Inc (NASDAQ:TSLA) and Apple Inc. (NASDAQ:AAPL) gear up to report earnings.
Trading those names before earnings can be tricky. So instead, here are the top stock trades we’re watching at the start of this week.
Top Stock Trades for Tomorrow #1: Celgene (CELG)
A Morgan Stanley note came out Monday saying Celgene Corporation (NASDAQ:CELG) may take longer than expected to resubmit a drug application to the FDA.
The company reports earnings on Friday, so some investors may avoid the stock. However, there could be some hope for bulls. I mistakenly thought that $95 would hold as support, so perhaps looking at $85 to hold is a lost cause.
If it does though, CELG could make up a lot of ground post-earnings. CELG has a low valuation and plenty of growth, particularly if management gets itself in order.
Top Stock Trades for Tomorrow #2: First Solar (FSLR)
Last Thursday, First Solar, Inc. (NASDAQ:FSLR) crushed earnings and revenue expectations, but shares are retreating.
Let’s use two charts. The one above is a long-term weekly chart and the one below is a one-year daily chart. On the chart above, we can see FSLR is trying to hold its breakout over that $72.50 to $75 area. Should it do so, FSLR should retest its recent highs in the low-$80s.
On the chart below, you can see FSLR is closely following trend-line support. It’s also hitting its 100-day moving average, a solid support level over the last six months.
Top Stock Trades for Tomorrow #3: Pfizer (PFE)
Pfizer Inc. (NYSE:PFE) is flirting with a breakout before its May 1st earnings report. Will the report crush bulls’ heart or fuel the move higher?
Shares continue to bump against that $37 level, tempting bulls with a potential retest of $39 and possibly more. Bulls have two levels to buy at. First, they could buy on a close over $37 for a breakout trade.
If shares of PFE pullback, consider buying between $35 and $36. The 50-day, 100-day and 200-day moving averages should be support, while trend-line support should also give it a boost. Below these levels and bears could run PFE down to $33.50.
Top Stock Trades for Tomorrow #4: Square (SQ)
Its tweets are losing power, but it never helps when Citron Research says it’s got a short target on a stock. In the case of Square Inc (NYSE:SQ), Citron is targeting $30, down big from its current levels.
We pointed out Square not too long ago, becoming leery of the name once trend-line support gave way. After a retest-and-fail of that level, it’s looking even more suspect.
The $35 to $37.50 level should be strong support should the 100-day moving average give way, but if I were a bear, I’d be careful shorting this powerful name.
For shorts, they can use a close back above trend-line support as their stop-loss. Conversely, bulls can use this move as an entry point.
Top Stock Trades for Tomorrow #5: Twitter (TWTR)
Let’s stick to the Jack Dorsey-led names and take a look at Twitter Inc (NYSE:TWTR).
Shares were initially under pressure Monday on news that it may be caught up in the Cambridge Analytica scandal along with Facebook Inc (NASDAQ:FB). Reports contradicting those claims have sent shares higher, though.
That’s left a perfect retest of the 100-day moving average. However, bulls who missed the move still have a chance to play. Should TWTR stock breakout over resistance near $31.50, a move back into the low- to mid-$30s is possible.
Likewise for bears, a break below $29 and the 100-day moving average should send it back to $27 in a hurry.
For the record, we like Twitter near $27.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell held a long position in AAPL and CELG.
