U.S. stocks started lower on the day, rallied into positive territory, then struggled to maintain those gains into Monday’s close. It was a mixed session in the market, but not a surprising one after Friday’s rally. Let’s look at a few top stock trades.
Top Stock Trades for Tomorrow No. 1: Apple (AAPL)
Shares of Apple (NASDAQ:AAPL) finally hit new 52-week highs. At least, it did so on an adjusted basis.
Pushing through its prior highs at $229.90, the stock peaked at $229.93. Now that it’s retreating, investors are worried about a potential pullback in the iPhone maker.
The stock made a very impressive rebound and breakout last week, and even gave investors a great red-to-green trade on Monday morning. However, it’s struggling to maintain those gains toward the close.
So long as shares are above uptrend support (blue line) and the 20-day moving average, bulls should feel comfortable. Really, so long as it’s above $215 and the 50-day moving average, and AAPL still looks okay on the long side.
Top Stock Trades for Tomorrow No. 2: General Motors (GM)
With no deal in place between the UAW and General Motors (NYSE:GM), shares of the latter are struggling to rally. On the plus side, they’re not falling.
The stock is consolidating between $34 and $35. Should it resolve higher, I need to see GM reclaim prior uptrend support (blue line) and the $35.50 mark. If it takes out the recent low, currently at $34.16, then a test of the 78.6% retracement may be in the cards.
Below that and the May lows near $32.40 may be possible.
Top Stock Trades for Tomorrow No. 3: Sarepta (SRPT)
Sarepta Therapeutics (NASDAQ:SRPT) has been a dangerous and volatile stock lately, making it one I don’t want to touch. Traders in this one — both bullish and bearish — need to use caution with it.
While SRPT did breakout over downtrend resistance (blue line), it’s struggling to reclaim the 78.6% retracement and the 20-day moving average.
Should it continue lower, look for a retest and possible break of the September lows at $72.05. On the upside, look for a move north of $89.25. Over it could send SRPT up to the 50-day moving average. Above that and shares could start filling the gap (blue box).
Top Stock Trades for Tomorrow No. 4: Bristol-Myers Squibb (BMY)
I just love the tight channel that Bristol-Myers Squibb (NYSE:BMY) continues to trade in. However, it is coming up to a difficult area.
$52 has played a significant role over the past year, most recently at resistance. It’s also where the 100-week moving average rests, as well as the 50% retracement for the one-year range.
Bulls should be careful buying into this level. A move over it could trigger a breakout, but if it acts as resistance, investors need to see channel support and the 10-week moving average buoy the share price.
Top Stock Trades for Tomorrow No. 5: Delta (DAL)
Delta Air Lines (NYSE:DAL) will report earnings later this week, and bulls will be looking for the stock to regain some altitude.
Shares are currently trading between the 23.6% retracement on the downside and the 38.2% retracement on the upside. A move over the latter and reclaiming the 200-day moving average likely sends DAL stock up to its 50% retracement.
Below the 23.6% retracement and the $51 mark, and $48 is most certainly on the table.
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.
