Stocks continue to move higher despite a number of traders now looking for a pullback. Just as it was on the way down though, markets can stay oversold or overbought longer than investors expect and if the path of least resistance is higher, than that’s where stocks will gravitate to. Let’s examine some top stock trades.
Top Stock Trades for Tomorrow #1: Alphabet
Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) crushed earnings expectations, but pulled back several percent on Tuesday’s open. However, GOOGL was able to claw back its losses on the day, getting back to flat on the session.
I love that shares are holding over the $1,120 level as well as the 200-day moving average. Now flirting with the $1,140 level, GOOGL stock looks like it wants to push higher. It already made a strong move over downtrend resistance (blue line) last week and the $1,180 to $1,200 level doesn’t seem out of the picture.
On the downside, I need to see GOOGL stay above prior downtrend resistance as well as current uptrend support (purple line).
Top Stock Trades for Tomorrow #2: Boeing
Boeing (NYSE:BA) continues to fly higher and is playing into our trade perfectly. We wanted to see BA stock hold its earnings-based gains from last week and told investors to watch if shares would consolidate just below resistance. It did and now we’re having another large move higher.
There was time to get in BA even after earnings, but traders who missed this one should take a pass. The stock is technically overbought in the short-term and while that doesn’t mean the run is over, it certainly diminishes the risk/reward. BA could get up to $420 or $425 if the market cooperates and momentum continues, but look to buy on a pullback, particularly if BA revisits $390 and its holds as support.
Top Stock Trades for Tomorrow #3: Gilead Sciences
Gilead Sciences (NASDAQ:GILD) is pulling back after its earnings miss, but is staying above $67. This $66 to $67 level has been a notable level for buyers, so investors could consider this a solid risk/reward long entry.
Should it hold, a rebound up to $70 is likely, which opens the door to more potential. But if support fails, a dip to $63 or below is certainly possible.
Top Stock Trades for Tomorrow #4: Estee Lauder
Shares of Estee Lauder (NYSE:EL) are flying Tuesday, up 12.5% after beating on earnings and revenue expectations. The $152.50 level has been a tough nut to crack and investors are going to be on the fence after Tuesday’s action.
After rallying up to $157, new highs looked to be on the way. However, EL stock has backed off its highs by about $5 per share, leaving it teetering precariously on that $152-and-a-half level. A fall below this mark has me looking at the $145 to $146 level for support. If the $152.50 breakout sticks, look for a retest of Tuesday’s highs in the not-too-distance future.
Top Stock Trades for Tomorrow #5: Starbucks
Shares are cracking over this mark now and should we get a slight pullback on Wednesday, investors may consider gobbling up the stock for a run up to and over $70 per share. This one has momentum, particularly if the market keeps up. I would love to see shares open red on Wednesday morning and quickly reverse to green, giving buyers a chance to hop on board.
Keep in mind though, Chipotle (NYSE:CMG) reports earnings on Wednesday.