It was a dull day in the markets, with it seemingly feeling like investors have already hit the exits for the holiday-shortened week. Remember, U.S. stock markets close at 1 p.m. ET on Wednesday and are closed on Thursday for the Fourth of July. Let’s look at some top stock trades going into Wednesday.
Top Stock Trades for Tomorrow #1: Nike
Nike (NYSE:NKE) was in the news Monday after the company decided to shelf a pair of Fourth of July kicks that some found offensive. From a stock perspective though, all we’re concerned about is the price action.
Nike stock slipped about 1% in response, as investors continue wondering if they’ll get a better buying opportunity.
Since April, Nike stock has not been able to generate much upside momentum. However, each little pullback in June was been met with buyers. For that to remain true, NKE stock needs to hold its 50-day moving average and uptrend support level (blue line).
Below and we can get a pullback to the $80 to $81 area. While it will likely draw in buyers near that mark, a drop to the $77 to $78 area is possible if it fails as support.
Top Stock Trades for Tomorrow #2: Amarin
My fear here would be a gap-up over $23 that gets sold into. If that’s the case, bears have a solid risk/reward should AMRN open above and then close below $23. Over $23 and bulls will maintain momentum.
Top Stock Trades for Tomorrow #3: Goldman Sachs
Goldman Sachs (NASDAQ:GS) gave a huge boost to its dividend last week. While other banks like JPMorgan (NYSE:JPM) and Bank of America (NYSE:BAC) raised their dividends, GS’s put through a big increase of 47%.
In any regard, the bank stock is — unsurprisingly — struggling to hold onto its gains. Above Monday’s highs is the most encouraging, allowing GS to embark on even more upside. However, it needs to hold over the $198 to $200 level.
Otherwise it will show that bulls have zero momentum right now.
Top Stock Trades for Tomorrow #4: Nio
Nio (NASDAQ:NIO) has been ugly, but we have to give it credit, it sure is trying. Shares were up 7.5% at one point on Tuesday, as investors continue to try busting this one out of its nasty downtrend.
Over $2.80-ish gets Nio above prior downtrend support and the 20-day moving average, two levels that acted as significant resistance last month. If it gets above these marks, the declining 50-day moving average and prior downtrend resistance mark near $3.50 are on the table.
That’s a lot of upside for aggressive bulls willing to speculate on the name. Let’s see if it can breakout first, though. On the downside, keep watching $2.50 as support.
Top Stock Trades for Tomorrow #5: Kroger
The last three weeks have been ugly for Kroger (NYSE:KR), and that may be putting it kindly. We highlighted the worry of closing below $23, so everyone bailing at sub-$21.50 has no excuse. We wrote: “$23 has proven to be a key level…Below that and KR could fall into no man’s land, with multi-year lows lingering between $19 and $20.”
Let’s see if KR stock can rally back to $23. If it does, let’s see if this level acts as resistance or if Kroger can reclaim it and push through downtrend resistance. If it either can’t rally back to $23 or if the stock continues to slide, let’s see if support comes into play between $19 and $20.