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)
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.