After a brutal day on Monday, the after-hours futures action told us Tuesday could be gruesome too. To many traders’ surprise though, equities were in positive territory at the open, and held those gains by the close. Let’s look at a few top stock trades after today’s session. .
Top Stock Trades for Tomorrow #1: Teva
Teva Pharmaceutical (NYSE:TEVA) shares are plunging on Tuesday, down over 10% and making new lows. Making matters even more difficult though, the company will report earnings before the open on Wednesday.
In mid-July, TEVA stock lost the $8 level as support, which quickly turned to resistance. Now holding $7, investors will want to see a powerful post-earnings move.
Essentially, they need to see Teva stock reclaim the $8 level, as well as the 20-day moving average. If it can, the 50-day moving average at $8.60 is in sight, with more upside potential beyond that.
However, if these areas act as resistance, Teva could still be in trouble, which is why patience is so important.
Top Stock Trades for Tomorrow #2: Take-Two Interactive Software
Take-Two Interactive Software (NASDAQ:TTWO) is getting a nice post-earnings response, up over 9% on the day. It’s been a volatile couple of sessions for TTWO now.
On Monday, shares plunged below channel support and the 38.2% retracement. Luckily, the 50-day stabilized it. On Tuesday, shares threatened to breakout over channel resistance, before retreating back down.
From here, I want to see uptrend support hold TTWO stock up. Below it and the 38.2% retracement, and another fall to the 50-day is likely. Should it continue higher, see how it does with $130 resistance.
Top Stock Trades for Tomorrow #3: Beyond Meat
Beyond Meat (NYSE:BYND) is frustrating a lot of investors. With plenty of selling pressure in the broader market on Friday and Monday, BYND stock barely moved. With Tuesday’s rally though, BYND is under pressure, falling almost 7%. Despite this strange price action, the setup in BYND is simple.
Below the 50-day moving average and secondary offering at $165, and BYND is a no-touch for longs. Above these levels puts the 20-day in play at $182 and north of that, $200 is back on the table.
Top Stock Trades for Tomorrow #4: PaySign
Shares of PaySign (NASDAQ:PAYS) are falling hard despite beating on earnings and revenue expectations. The stock had been red-hot, almost hitting $19 in early July. Since then though, it’s been volatile and under pressure.
PAYS opened above but failed to hold the 50-day moving average on Tuesday. So far though, the $11 level is holding up well. This was a key mark in May and June. Further, the 100-day moving average at $10.61 and the 38.2% retracement at $10.65 is holding as support as well.
Longs who dip their toe in the water have a solid risk/reward, as they can stop out on a break of Tuesday’s low. On a rebound, look for a test of the 50-day moving average.
Top Stock Trades for Tomorrow #5: Sogou
Like many Chinese equities, Sogou (NYSE:SOGO) has been rocky over the past few sessions. Up over 8% on Tuesday and it’s turning some heads, though.
Below $3.75 is still an issue for bulls. Ideally, they will wait to see SOGO reclaim this mark, along with downtrend resistance. However, it may be safest to wait for it clear the 20-day and 50-day moving averages as well.
For me, I would rather buy strong names that are pulling back into support, rather than weak names rallying into resistance. The former setup is much easier than the latter when trading on the long side.