5 Top Stock Trades for Tuesday: SLB, XOM, KL

Here are the top stock trades we’re watching for Tuesday morning

Equity markets were relatively quiet on Monday, which is perhaps surprising given that crude oil prices rocketed higher. The commodity jumped more than 13% after a drone strike in Saudi Arabia over the weekend. Here are some top stock trades to watch this week. 

Top Stock Trades for Tomorrow No. 1: Schlumberger (SLB)

Top Stock Trades for Tomorrow No. 1: Schlumberger

Shares of Schlumberger (NYSE:SLB) are up over 5% on the day and could rally even further should demand for crude oil remain strong. On the charts, though, SLB stock is running into an important level. 

$40 was support from February until May, when share prices broke down. In July, $40 was a tough level of resistance that forced SLB back to new lows. It has been a tough ride for shareholders. 

However, with Monday’s gap up, shares are above the 200-day moving average. If they can reclaim $40, the 38.2% level near $43.50 is on the table. Above $44 and the 50% retracement is possible. 

On the downside, see that SLB stays above prior downtrend resistance (the blue line). 

Top Stock Trades for Tomorrow No. 2: Exxon Mobil (XOM)

Top Stock Trades for Tomorrow No. 2: Exxon Mobil

Like SLB, Exxon Mobil (NYSE:XOM) isn’t getting quite the same boost that crude oil is, up “just” 1.6% near the close on Monday. 

From here, bulls will want to make sure XOM stock stays above the 200-day moving average and the 61.8% retracement at $73.33. If it can, the 50% retracement near $76 is on the table, with the next upside target being June/July resistance at $77.

If support gives way, I want to see XOM hold up above prior downtrend resistance. Clearing downtrend resistance is a big setup for a lot of down-and-out energy names. Now it needs to stick. 

Top Stock Trades for Tomorrow No. 3: Kirkland Lake Gold (KL)

Top Stock Trades for Tomorrow No. 3: Kirkland Lake Gold (KL)

After last week’s retreat, gold is on the move higher again. That’s giving a boost to Kirkland Lake Gold (NYSE:KL), which is up 4.3% on the day. However, that’s well off the highs near $45. 

Shares are near a key point on the charts. Should KL close below $42, it will lose short-term support (black line) and uptrend support (blue line). That could open it up to a test of the 200-day moving average.

What bulls really need to see is for this support level to hold, and for KL stock to reclaim the 50-day moving average. If it can, it puts $50-plus on the table. 

Top Stock Trades for Tomorrow No. 4: ServiceNow (NOW)

Top Stock Trades for Tomorrow No. 4: ServiceNow (NOW)

The setup in ServiceNow (NYSE:NOW) is pretty straightforward. Support at $250 held, as shares work on reclaiming the 20-day moving average. 

If it does, it puts downtrend resistance (blue line) on the table, with a test of $270 as the next upside target above that. However, if the 20-day or downtrend resistance rejects NOW, see that $250 again holds as support.

If it fails, a test of the 200-day moving average is likely. 

Top Stock Trades for Tomorrow No. 5: Dow

We’ve kept an eye on Dow (NYSE:DOW) thanks to that big dividend yield. However, more recently it’s been the bullish price action.

After bottoming out around $40 last month, shares have been quick to reclaim both the 20-day and 50-day moving averages. Further, Dow stock has also reclaimed the key $47 level. That puts $52 on the table now. 

On a pullback, I would love to see the $47 level now act as support. However, the 50-day also attracted buyers on two consecutive pullback days (blue box) earlier this month. So that mark is the must-hold for now, in my view. 

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2019/09/5-top-stock-trades-for-tuesday-slb-xom-kl/.

©2019 InvestorPlace Media, LLC