All eyes were on Apple (NASDAQ:AAPL) for its streaming announcements, as well as new iPhones, iPads and Apple Watch upgrades. The implications go further than just Apple and the holiday season though. Let’s use this opportunity to look at a few top stock trades.
Top Stock Trades for Tomorrow #1: Apple
Apple announced a lot of exciting updates for its customers, one of which is streaming video. That dealt a blow to other names in the streaming space that I want to look at more closely in a minute.
For Apple, the stock is setting up in an ascending triangle pattern. That’s a bullish technical development where rising support squeezes shares up against a static level of resistance.
In this case, resistance comes into play near $215. A sell-the-news event could cause this setup to break down. But a close over $215 could trigger a move up to the July highs near $220. Over that and $230+ is in the picture, with the all-time highs not far above that.
Below uptrend support and I want the 50-day moving average to act as support.
Top Stock Trades for Tomorrow #2: Disney
After years of stagnation, Disney (NYSE:DIS) stock erupted in April. In just a few months, the stock went from $106 in March to almost $150 in July. The company is doing well, although shares fell almost 3% once Apple announced its $4.99 per month streaming service.
That undercuts its Disney+ service, which is $6.99 a month or $70 for the year, and shares came under pressure as a result.
In any regard, we can see short-term uptrend support (blue line) failing, while the 50-day moving average is acting as resistance. That’s a change in Disney’s tune and unless it can reclaim the 50-day soon, lower prices may be on the way.
On the downside, $130 has been support since the April rally, with the 38.2% retracement just below. If that fails, the 200-day is on the table.
Top Stock Trades for Tomorrow #3: Netflix
Netflix (NASDAQ:NFLX) can’t fall back on the type of profitability that Disney can. As such, shares continue to linger near the lows.
InvestorPlace readers knew to be careful with the stock when it failed to reclaim its 20-day moving average. As expected, shares are now threatening to break below its recent lows. If it does, $270 is on the table. Below that and even lower prices are possible. Keep in mind, there are plenty of Q4 lows beneath $270.
Over the 61.8% retracement at $290 changes the narrative.
Top Stock Trades for Tomorrow #4: Roku
Shares of Roku (NASDAQ:ROKU) are getting hammered on Tuesday, down more than 10%. The day prior, Roku put in a bearish engulfing candle and the selling is cascading on Tuesday.
The decline in high-growth stocks doesn’t help, although it wasn’t a complete blindside.
So far, the 20-day moving average isn’t buoying the name, but given that it ran from sub-$100 to $176.50 in less than a month, that’s fair. Now, I would love for a test of the 50-day moving average. If it gets there, let’s see if it draws in buyers or if it goes right through it like some other high-growth stocks did.
That’s vague, but when a stock goes from $26 to $175 in less than a year and starts to unwind, it’s best to proceed with caution. Those who love Roku for the long-term and sold on the rise, can consider nibbling a bit if it responds well to the 50-day.
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.
