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)Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) will report earnings on Monday after the close (buy regardless?), while rumors swirled Monday that the company may be pursuing a purchase of Fitbit (NYSE:FIT).
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)
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)
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)Invitae (NASDAQ:NVTA) is moving nicely on Monday, up about 6%. It has got bulls cautiously optimistic that perhaps this name has finally bottomed. I’ve liked NVTA stock for quick some time, but have cautioned that it’s a long-term opportunity, not a short-term cash grab.
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)Walgreens (NASDAQ:WBA) is up marginally despite reporting earnings. The good news is, I guess, that WBA stock isn’t down on the day.
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).