U.S. stock indices were again quiet on Wednesday, as we begin to chip away at the tip of the earnings iceberg. We’re mostly delving through the banks right now, but will have tech and other industries beginning soon. Let’s look at a few top stock trades.
Top Stock Trades for Tomorrow #1: Tesla
Tesla (NASDAQ:TSLA) stock has been moving favorably, working on its seventh straight week of gains.
It’s getting into a very key area though, the $250 to $260 zone. This was prior range support for years, buoying Tesla stock on each test. Back in May, the stock plunged below this mark, rebounded the next week and failed to reclaim it.
This is all shown via the purple arrow on the chart and shows when an area shifts from support to resistance. Now back in this area, it’s vital for TSLA stock to reclaim this range level in order to keep the rally alive.
Those who bought Tesla sub-$200 as a trade may consider booking some profits here. Should shares push through, look for a rally up to the 200-week moving average, currently at $273. On a pullback, see that the 10-week holds as support. I wouldn’t want to see Tesla below $240.
Top Stock Trades for Tomorrow #2: Abbott Labs
I want to see ABT stock hold $85 on the downside and see if it can push up to channel resistance on the upside.
Top Stock Trades for Tomorrow #3: Gold
The move has been years in the making, but the SPDR Gold ETF (NYSEARCA:GLD) is starting to make some waves. The iShares Silver Trust ETF (NYSEARCA:SLV) has been trading well too, but isn’t putting together the kind of chart GLD is.
Above is a long-term weekly chart. With GLD over the $128 to $130 area, it’s in breakout mode. While shares are putting in a nice bull flag setup after a huge burst higher in June, we absolutely need to see prior resistance hold as support.
A rate cut should help fuel a rally for gold, although the market is surely starting to price in such an event. Over $135.55 sends GLD even higher. A pullback to $130 or the 10-day moving average that holds as support may be a buy-the-dip opportunity.
Top Stock Trades for Tomorrow #4: Invitae
Shares of Invitae (NASDAQ:NVTA) took off Wednesday, rallying up toward $24 at one point in the day. Citron Research said it had a position in the name and is using a $100 price target. We’ve been telling InvestorPlace readers for months that we love this name. Today’s action came with perfect timing.
On Twitter on Tuesday, we pointed out that NVTA stock broke below the 20-day moving average, but reclaimed this mark by the close. That was very constructive action, while Wednesday’s action has been downright impressive.
The action is similar to what we saw last month, where shares broke below the 20-day, reclaimed it in the same session, then went on a monster run over the next few days. I’m not sure that history repeats, but investors are hopeful that it will.
Let’s see if NVTA can push through $24 to $24.50. If it can, $26+ could be in the cards.
Top Stock Trades for Tomorrow #5: Teva Pharmaceutical
Shares of Teva Pharmaceutical (NYSE:TEVA) are taking it on the chin. The stock is down 11% in just three days and more than 20% from its highs earlier this month.
The stock hit new 52-week lows on the move and is threatening to fall below $8 support. Longs with a strong stomach can play against Wednesday’s lows, but Teva has not been a great one to own. A break below $8 could accelerate the selling pressure. A rally could bring Teva back up to its 20-day moving average. Above that and $10 is possible.