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)
Pinterest (NYSE:PINS) caught a nice boost on Monday after an analyst upgrade from RBC Capital Markets. The rally took PINS stock to the top of its current downtrend.
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)
Man, InvestorPlace readers have been all over this Bank of America (NYSE:BAC) trade. Shares didn’t quite get down to range support near $26.50 ahead of earnings.
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.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long PINS and BAC.
