After a big rally on Monday, bulls did a great job by keeping the markets about flat on Tuesday. This digests the big move without giving up any real gains and puts the market just a few percent below its all-time high. Who would’ve thought? In any regard, let’s get to a couple of top stock trades.
Top Stock Trades for Tomorrow #1: Delta
A guidance update has Delta Air Lines (NYSE:DAL) taking flight on Tuesday, sending shares higher by more than 6%.
It’s got DAL stock rallying back into its prior long-term uptrend channel (blue lines). Provided it can now stay above uptrend support and the 50-week moving average, perhaps Delta will have a continued upward trajectory.
If that’s the case, investors can first target $59 to $60, a level that has generally rejected DAL over the prior 15 months. However, if it is trading particularly well, it could trade into the low- to mid-$60s where it will hit uptrend channel resistance.
Top Stock Trades for Tomorrow #2: Lyft
The Lyft (NASDAQ:LYFT) IPO isn’t doing well. It looked like it was priced right in the upper $60s (its initial pricing) to $72 (where it was finally priced at). After opening over $87 though, it obviously opened way too high. Now under $70 in Day 3 of trading, it looks like Lyft is finally starting to wash out.
Does that make it a buy? Not quite.
Lyft is down less than 1% on the day and it’s reclaimed the prior session’s low. However, I would have preferred to see it close over the prior session’s close after it reclaimed the low.
So what now? We could have a tradeable bottom on Wednesday, particularly if Lyft opens slightly lower and quickly goes green. The first target would be the $72 IPO price, but a close north of this level would be more encouraging.
My worry here is that the IPO now seems tainted. The stock isn’t doing well and that’s not helping to create positive buzz. Will the market want to fix that, given that it’s the first of many big-name IPOs that are likely to debut this year? Time will tell, but it needs to get above its IPO price to get some momentum.
Top Stock Trades for Tomorrow #3: General Motors
Shares of General Motors (NYSE:GM) are treading water Tuesday, despite the automaker announcing a 7% decline in deliveries for Q1. What now?
The stock has been slowly putting in a series of higher lows over the last six months, an encouraging sign for longer term bulls. If we can get GM stock over $38.31, it will clear the 20-day, 50-day and the 61.8% Fibonacci retracement. That will setup a test with $39, a key level over the last year and a half.
If GM gets to $39 and it acts as resistance, let’s see if the automaker can notch another higher low, perhaps allowing the 50-day to buoy it. If General Motors pushes through this year level, a run into the low-$40s is possible.
Top Stock Trades for Tomorrow #4: Wynn Resorts
The stock has made a powerful two-day move, vaulting Wynn over the 200-day moving average and the $130 level. The latter of the two kept a lid on the stock so far this year, which coincidentally is near the 38.2% Fibonacci retracement.
On the downside, I would love to see this 38.2% retracement/$130 level act as support. The moving averages are starting to turn higher and that could help keep the bullish momentum going. If that’s the case, investors can have a few targets on the upside. The first is the 50% retracement at $144, while $150 is a solid target No. 2.