It was a robust day in the stock market Monday. Several big-time names hit new all-time highs, while the S&P 500 achieved the feat as well. Let’s look at a few top stock trades.
Top Stock Trades for Tomorrow No. 1: Alphabet (GOOGL)
![Top Stock Trades for Tomorrow No. 1: Alphabet (GOOGL)](https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif)
It has left shares trading at new all-time highs ahead of its report after the close. How do traders set up for this one?
As we recently pointed out, GOOGL stock has been consolidating in a sideways pattern for more than a year now. A breakout would come as little surprise at this point.
However, since shares are already technically overbought and have rallied considerably from the October lows, range resistance holding firm wouldn’t be a surprise, either.
Should we get a further breakout, see that GOOGL stock maintains a level above $1,295 (and preferably $1,300). On a pullback, see that $1,230 to $1,240 holds as support. Below that level puts the 50-day moving average on the table.
Top Stock Trades for Tomorrow No. 2: Roku (ROKU)
![Top Stock Trades for Tomorrow No. 2: Roku (ROKU)](https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif)
Look at this one, back from the dead. Roku (NASDAQ:ROKU), which fell from $175 to sub-$100 in just a few weeks has quickly rallied almost 50%, back up to $147.
Can you say volatility or what?
After snapping back higher in October, ROKU stock did a great job consolidating its gains over the last week (blue lines) before moving higher again on Monday.
$150 was a critical mark once the pullback began in September, while the 23.6% retracement is near $140. Use that as the range for now. In the short term, over $150 is bullish and below $140 is bearish.
Below $140 puts the 50-day moving average and recent support zone near $125 back on the table. If Roku stock moves over $150, then $160-plus is on the table.
Top Stock Trades for Tomorrow No. 3: Microsoft (MSFT)
![Top Stock Trades for Tomorrow No. 3: Microsoft (MSFT)](https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif)
On Monday morning, Microsoft (NASDAQ:MSFT) stock jumped out to new highs following an after-the-close announcement that the company will receive the 10-year JEDI contract from the Pentagon, valued at roughly $10 billion.
The move caused a breakout on the charts, as MSFT stock has been consolidating for several months now. As we highlighted this morning, it is now very important for Microsoft stock to maintain over $142.
Below that level and it may be a sign that bulls have become exhausted in the short-to-intermediate term. Over $142 is bullish, while a move over Monday’s highs could send Microsoft toward $150.
Top Stock Trades for Tomorrow No. 4: Invitae (NVTA)
![Top Stock Trades for Tomorrow No. 4: Invitae (NVTA)](https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif)
In any regard, it’s vital that shares stay above the recent low at $16.05 now. Preferably, NVTA will even stay above the $17 mark and continue to recover. If it does, look to see if it can rebound to $19. Above that mark puts its major moving averages on watch.
Top Stock Trades for Tomorrow No. 5: Walgreens (WBA)
![Top Stock Trades for Tomorrow No. 5: Walgreens (WBA)](https://investorplace.com/wp-content/plugins/lazy-load/images/1x1.trans.gif)
Bulls really need to seize control of WBA stock if they want to take it higher. If not on earnings, then when? Moving above $57 puts WBA north of its 78.6% retracement and 200-day moving average.
That’s a good start if investors want to see WBA stock take out the September high of $58.10. Above that mark and a run to the $62-to-$64 area could be in the cards before Walgreens hits any notable resistance.
Below $53.50 and I have no interest in WBA stock on the long side. That would put shares below the 50-day and 100-day moving averages, as well as uptrend support (blue line).
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long ROKU, NVTA and GOOGL.