After starting off deep in the red on the first trading day of 2019, stocks were able to recover by afternoon trading. The question now lingers for bulls: will they be able to push the markets higher and keep the bears at bay?
Considering the still-heightened volatility levels, it’s unlikely the market won’t hear bears roar again. Let’s look at some top stock trades for the first time this year.
Bank of America Stages Rally
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Once the $28.50 to $29 level gave way, shares of BAC have been in a prolonged downtrend. Between $25.10 and $25.50, the stock may have some trouble. A close above this range could ignite a rally, but let’s see how it does over the next few sessions. I don’t want to buy right into resistance.
JPMorgan Faces Resistance
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Of course, JPM can push through trendline resistance (blue line) and the 21-day moving average and climb back to $104. If it can, that’s good for 4.5% upside. But I don’t know that it’s worth taking that shot, particularly knowing that other resistance is nearby.
That said, I love this name with its low valuation, 3.3% dividend yield and solid growth outlook. I want to see a higher low for JPM and certainly do not want to see it below $92. I’m a short-term seller on a retest of $104 to $106, if it gets there.
Box Surges
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The move sparked a huge bullish engulfing candle, but concerns linger with the $19 to $20 level nearby. This level was a significant support/resistance level in the past. Will it still hold up as resistance if Box continues to rally?
My guess is yes, but we can re-evaluate it on a retest.
Has General Electric Bottomed?
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Down about 80% at one point and GE is far from its glory days. But just as we’ve highlighted a few times over the past couple of weeks, GE has not made new lows with the market. In fact, it put in a lower high, as seen by our uptrend support line (blue line).
The next thing we wanted to see after the higher low was a push through $8. GE is tangling with that level as we speak. Above that and the 50-day will likely be resistance, but if GE can continue to trend higher — slowly but surely — it will help rebuild confidence for the bulls.
Tesla’s Pullback
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So far, TSLA is holding up above the $300 level — and has been over the past few sessions — but it’s been quite volatile. I am becoming more skeptical of TSLA stock with it below its major moving averages and teetering on this $300 to $310 level.
Above $300 and technically it’s okay though. Below that, and we could get a selloff into earnings. On the plus side, this could set Tesla up as a buy into the print. Let’s see if $300 holds first.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long BOX and JPM.
