The markets started with a bang on some positive trade-war news, but has since given up much of those gains. Amid the intraday reversal from the highs, we have plenty of big movers to cover in our top stock trades.
Top Stock Trades for Tomorrow #1: Micron
Expectations for Micron (NASDAQ:MU) had gotten really bad. I wasn’t sure what to expect and wasn’t playing the stock into its earnings. In any regard, the charts didn’t look good leading into the print.
But with Wednesday’s big rally off a top- and bottom-line beat, bulls are finally breathing a sigh of relief.
Shares are bursting through $36 resistance after $32.50 support held on numerous occasions. However, the stock now has a big test: the 50-day and 200-day moving averages.
Currently between $37.12 and $38.68, respectively, Micron will face too potentially stiff levels of resistance. If they bat the stock lower, we need to see former resistance turn to support at $36. If it can push through, it could ignite a rally even higher, perhaps back up to $44 resistance.
Top Stock Trades for Tomorrow #2: Bitcoin/GBTC
Bitcoin has been downright explosive. Just before midnight on Friday, the cryptocurrency erupted through the $10,000 mark. By noon Saturday, Bitcoin had pierced $11,000.
Now? It’s at $13,500.
This thing is going parabolic. Everyone hated BTC and now everyone wants in. I should have known when people were asking me about it at a graduation party over the weekend. I don’t know if Bitcoin goes to $15,000 next, $20,000 next or $30,000 next.
But I do know the action is too wild for me. Using the Grayscale Bitcoin Trust (NASDAQ:GBTC), we can see that it’s hitting a level of channel resistance near $17. If Bitcoin continues to soar, so too will GBTC. But if you caught a bulk of this move in GBTC, taking at least some off the table here could make sense.
A dip back to $12 and/or to the 21-day moving average will surely attractive some buyers.
Top Stock Trades for Tomorrow #3: Broadcom
Nvidia (NASDAQ:NVDA), Advanced Micro Devices (NASDAQ:AMD) and others were jumping on Wednesday. Part of that’s due to Micron’s better-than-expected results. The other catalyst comes from the — fingers crossed — improving trade-war talks.
Broadcom (NASDAQ:AVGO) stock is setting up nicely as a result. While it’s not up as much as some of its peers thanks to a potential fine from the EU, shares are still pushing through $280 resistance.
If the stock can hurdle its 50-day moving average just under $286, it could fuel a run up to the $290 to $295 level, with $300 being the upside target. Below $280 and it may need more time to setup.
Remember, less than two months ago this name was trading at $320.
Top Stock Trades for Tomorrow #4: Jabil Inc
Jabil Inc (NYSE:JBL) ripped higher on solid results last week and continues higher this week. But there’s some caution on the weekly charts.
As you can see above, JBL stock has routinely run into range resistance up near $31. If it pushes through, it could spark a multi-year breakout. Should it acts as resistance again, Jabil will likely pullback.
If it does, I want to see $29 and/or the 10-week moving average act as support. Keep it simple with JBL.