What a beating bulls are taking on Wednesday. Just a day after the markets were jumping higher on delayed tariffs, they’re down much more as the 2-year and 10-year Treasury yield curve inverted. Let’s look at some top stock trades.
Top Stock Trades for Tomorrow No. 1: Nvidia (NVDA)
Almost a year after falling apart, Nvidia (NASDAQ:NVDA) stock is still trying to find its footing. Shares are dangling by a thread at $148, a level that marks the August lows.
Below this level immediately opens up NVDA stock to a possibly decline down to $144. Below that and the support range between $130 and $135 is on the table.
If $148 holds, bulls will need to see Nvidia reclaim the 50-day and 200-day moving averages near $159 and $162 before shares look better on the long side.
Top Stock Trades for Tomorrow No. 2: Alphabet (GOOGL)
Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) is perched in a precarious spot. The stock is resting right on uptrend support (blue line), which has been in place since the June lows.
If support holds, look to see that GOOGL reclaims the 20-day moving average and 38.2% retracement. If it fails, Alphabet looks attractive near $1,140. There it will have the 50% retracement, with the 50-day and 200-day moving averages just below.
If the stock really craters, a dip into the $1,000 to $1,020 area has been a good buy zone for GOOGL.
Top Stock Trades for Tomorrow No. 3: Cisco (CSCO)
Cisco Systems (NASDAQ:CSCO) is sitting in a very right-or-wrong position as range support sits between $50 and $51. It helps that the 200-day moving average is at $50.60 as well. The 38.2% retracement is just above this mark as well.
See what I mean? Either support holds and Cisco bounces, or it fails and lower prices will be ushered in.
Below this range could trigger a decline down to the 50% retracement near $49.25-ish. Below that and the 61.8% retracement near $47 could be in play.
If support holds, a bounce up the 20-day moving average is the first upside target, while the 50-day moving average is the second target.
Making it all that much trickier? Cisco reports after the bell.
Top Stock Trades for Tomorrow No. 4: The RealReal (REAL)
The breakdown in The RealReal (NASDAQ:REAL) showed itself a few days ago, when support gave away as downtrend resistance was squeezing it lower. Wednesday’s 15% post-earnings beating only worsens the loss, as REAL is now well below its $20 IPO price.
From an investment standpoint, perhaps investors may start to find The RealReal attractive. From a trading perspective, it’s anything but.
Bulls need to wait for a reversal to take place in REAL. Ideally, shares will trade below the daily low and reverse higher, closing above those prior lows. A higher open that fails to take out the lows makes the rally somewhat suspect, but not impossible.
Give this one some more time to set up if you’re trading it, particularly in this current environment.
Top Stock Trades for Tomorrow No. 5: Talend (TLND)
Talend (NASDAQ:TLND) has been a beast on Wednesday, rallying 1% in the face of a big market decline.
Shares continue to trade really well this month, gapping up over downtrend resistance (purple line), and maintaining above the 20-day and 50-day moving averages.
A close over $40 likely kickstarts a rally up to the 200-day moving average. If short-term uptrend support fails (blue line) and TLND trades below $38, look for moving average support to buoy the name.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long NVDA and GOOGL.
