Investors are back from a three-day weekend and apparently, they’re feeling bullish. U.S. stocks are up modestly on Tuesday, likely on the fact that we didn’t get any significant negative news over the weekend. The key now will be to see how they trade throughout the week. Thankfully, we have some top stock trades setting up nicely.
Let’s start with one of Wall Street’s biggest: Apple (NASDAQ:AAPL). The tech giant has seen its stock rebounding since it reported earnings a few weeks ago. Negative iPhone stories and news that Warren Buffett lightened up (albeit barely) on his Apple position haven’t been enough to knock this one down.
That bodes well for bulls when a stock holds up despite negative headlines. In any regard, we have some super tight consolidation in this name. It increases the odds for a big move, although that can go in both directions.
Should shares break down, I would look for $165 to step in as support. Not only is uptrend support (purple line) in play, but so is the 50-day. On the upside, I’m looking for a breakout over the $172 area, sending AAPL to $175 and perhaps $185.
Weight Watchers (WTW)
A JPMorgan downgrade dinged Weight Watchers (NASDAQ:WTW) on Tuesday, but the stock is doing a heck of a job rallying off the lows. Still, bulls ought to be careful. This one is in as clear a downtrend as I’ve ever seen.
Until WTW can pierce through the 21-day moving average and get over downtrend resistance (black line), it will remain a no-touch for me. At least from the long side. Rallying off the lows is promising, but keep in mind that WTW made new 52-week lows this morning.
Shares of Facebook (NASDAQ:FB) are pulling back after the stock’s powerful post-earnings rally in late-January. The stock nearly hit the 21-day moving average, an area that is now likely support given the recent bullish action in the name.
Further, uptrend support (blue line) should help buoy the name provided the market does not come under significant pressure this week. Should it hold, we could see FB stock rally back to its post-earnings highs near $172.
Below $157.50 though, and $147.50 to $150 becomes more likely.
Intercept Pharmaceuticals (ICPT)
Shares of Intercept Pharmaceuticals (NASDAQ:ICPT) are somewhat of a mixed bag on Tuesday — at least from a technical standpoint. While shares are up almost 7% on the day following positive Phase 3 clinical trial results, they are well off the session highs.
The $130 level is clearly acting as resistance, as ICPT briefly pierced this mark and then pulled back aggressively. It would be very constructive for ICPT to hold up over the $110 level. While testing that mark would mean a break below the 21-day moving average — which is acting as support on Tuesday — it would mean that uptrend support and the 50-day moving average are still intact as support.
So long as ICPT is over the 50-day, I like its chances of retesting $130. Below and the 200-day moving average is possible.
The SPDR Gold ETF (NYSEARCA:GLD) is jumping on Tuesday, climbing more than 1.4% on the day. The rally is launching the GLD ETF to new multi-month highs.
The move over $123 in January has ignited a bevy of buying, particularly once this notable level began serving as support earlier this month. With uptrend support (albeit a bit steep now) and the 21-day moving average also acting as support, GLD looks good to challenge resistance near $128 to $130.
Given that the RSI is already over 70, I expect this level to act as resistance on GLD’s first test — provided that it can get there in the first place. Consolidating and/or pulling back wouldn’t be bearish and would give GLD another shot at a big-time breakout. Below $123 though and that tone changes dramatically.