Markets chugged higher on Monday, as investors gobbled up stocks after a strange finish to last week. Let’s look at a few top stock trades as investors gear up for a busy week of earnings.
Top Stock Trades for Tomorrow No. 1: Pinterest (PINS)
Can it push through channel resistance (blue line) or will resistance hold strong?
If it holds, a retest of $24 could be in store. A channel breakout could send Pinterest stock to the 38.2% retracement at $28.28. Above that, at $28.72, is the 100-day moving average. Moving over that could kickstart a move toward $30.
Top Stock Trades for Tomorrow No. 2: Bank of America (BAC)
Post-earnings, BAC stock has been moving well, spending last week consolidating just below range resistance. On Monday, we have a breakout in the name. Over $30.50 and BAC stock looks good on the long side.
Shares are hitting multi-year highs now, and if they continue higher, see if BAC stock can surpass $31.70. Over $32 could cause an even further breakout. Bank of America’s unadjusted high from 2018 is up at $33.05, for reference.
Top Stock Trades for Tomorrow No. 3: Twitter (TWTR)
Twitter (NYSE:TWTR) has spent the month chopping between $39 and $40, as it clings to the 100-day moving average. The 61.8% retracement has been support on the downside, while $40 has been resistance on the upside.
The company reports on Thursday before the open, so be aware of that, too.
On the downside, look to see if the 61.8% retracement buoys the stock. Below it puts channel support (blue line) and the 200-day moving average near $37 in play. Over $40 puts the 50-day moving average and 78.6% retracement at $41.66 in play. Above that and $44+ is possible.
Top Stock Trades for Tomorrow No. 4: Service Now (NOW)
Service Now (NYSE:NOW) has been mostly range-bound between $270 to $275 on the upside and $245 to $250 on the downside. Additionally, the 100-day moving average has been resistance, while the 200-day moving average has been support.
With range support and the 200-day moving average now giving way as support, it opens up the door to more possible downside in NOW stock.
Shares are flirting with a close below the 61.8% retracement too. If they fail to reclaim this mark and the 200-day moving average in a relatively quick manner, more downside could be on the way.
The 50% retracement is all the way down near $225. To fill its February gap, Service Now would need to fall below $200 per share, although that kind of slide may not be warranted, especially in the short term.
Top Stock Trades for Tomorrow No. 5: Seattle Genetics (SGEN)
Seattle Genetics (NASDAQ:SGEN) shares surged on Monday, up more than 15% on positive results for an oral breast cancer drug.
Monday’s move is a powerful rally, bursting SGEN stock over uptrend resistance (blue line). Sitting between its 123.6% and 138.2% retracements, see if SGEN stock can take one out in either way.
Above the 138.2% and SGEN may be able to continue higher. Below the 123.6% and it may need to consolidate before going higher again.