U.S. equities put together a solid rally on Monday as tensions between the U.S. and China cooled over the weekend. Let’s look at a few top stock trades as we begin the week.
Top Stock Trades for Tomorrow #1: Apple
Apple (NASDAQ:AAPL) stock continues to move really well since its iPhone event earlier this month.
Shares are breaking up and out of its bull flag (purple lines). With the move higher, investors have two upside targets left: $226.42, which is this month’s high, and then the all-time highs from back in October 2018.
Should selling pressure mount, look to see if the 20-day moving average supports Apple.
Top Stock Trades for Tomorrow #2: Disney
Disney (NYSE:DIS) is doing the opposite of Apple right now, as shares continue to stall. The stock is bobbing along the 61.8% retracement and $130 support, which has been significant since April.
Should shares continue lower, look to see if the 200-day moving and potentially a full retracement of the post gap-up rally is enough to bring back buyers. Below $125 could trigger a gap fill — full or partial — down to $115.
Top Stock Trades for Tomorrow #3: Bristol-Myers
Man, how well has Bristol-Myers Squibb (NYSE:BMY) been doing lately? Shares continue to churn higher, showing excellent relative strength over the last two months. Seriously, the upward channel that BMY is in is really encouraging. Let’s see if shares can continue to bob higher, up to the 50% retracement near $52.30 and possibly $53. The latter has been a significant level in the past year.
Below the 20-day moving average and channel support, could trigger a decline down the 50-day and 200-day moving averages.
Top Stock Trades for Tomorrow #4: Thor
Thor Industries (NYSE:THO) is still up big on the day, climbing more than 15% on earnings. However, it’s well off its session highs when it pushed through the 200-day moving average and nearly climbed over $60.
Unfortunately for bulls, this stock has been in a very deep trend of lower highs. That’s made it very tough to buy this stock, as each dip has led to more declines.
The stock is showing promise in the short-term, but I need to see more validation. Specifically, I’d love to see a higher low secured on the daily chart, and for THO to reclaim the 200-day moving average to show that it could have longer term potential.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long AAPL and DIS.
