While the stock market started off higher on the day, selling gripped the indices as the market turned lower on Tuesday. Let’s take a closer look at a few top stock trades.
Top Stock Trades for Tomorrow #1: Facebook
Facebook (NASDAQ:FB) stock is at a very critical level at the moment. Not only is it resting on the notable $175 level, but it’s also on the 200-day moving average. Further, the 61.8% retracement is at $175.98.
Should this confluence of support fail to provide FB stock a bounce, bulls could be looking at a decline down to the $160 area. If it holds, look for a rebound up to the 50-day moving average.
If Facebook stock can reclaim the 50-day, a rally to $193.10 — the September high — is possible.
Top Stock Trades for Tomorrow #2: Broadcom
This one remains peculiar, doesn’t it? Broadcom (NASDAQ:AVGO) continues to trade in a narrowing wedge as the 200-day moving average keeps buoying the name.
So what now? Confident investors may consider buying the stock near current levels, as AVGO remains perched on long-term uptrend support (black line). Below could usher in a move to the 50% retracement near $265.75. Below that and investors may consider stopping out, as further selling could take place.
If support holds, look for a rally back up to downtrend resistance (blue line). Over this mark and $290+ is possible, with the September highs near $299.50 on the table.
Eventually, something will have to give with a tightening range like this.
Top Stock Trades for Tomorrow #3: Charles Schwab
Charles Schwab (NYSE:SCHW) took it on the chin Tuesday, falling about 10% on the day. However, the stock fared better than many of its peers, after SCHW announced commission-free trading.
Still, it drops SCHW stock into an important area. Roughly $37 has been long-term support, while downtrend resistance has been squeezing the stock lower for more than a year.
Should support give way, it puts the 2019 low at $35.85 on the table. Below that and SCHW could decline into the $30 to $32.50 area. On a rebound, see if it can reclaim the 50-week moving average and downtrend resistance (blue line).
Top Stock Trades for Tomorrow #4: TD Ameritrade
As you can see, some of Charles Schwab’s peers have it much, much worse. TD Ameritrade (NASDAQ:AMTD) lost a quarter of its value on Tuesday, wiping out two years’ worth of gains.
It thrusts AMTD into a vital level down near $35. Below this mark could push AMTD down into the $30 to $32 area. Should AMTD rebound, let’s see if shares can reclaim the $37.50 mark. Above it and $40 could be in the cards.
Stitch Fix (NASDAQ:SFIX) has put in two solid days of trading ahead of the company’s earnings results after the close on Tuesday.
I’m not making any predictions for this high flyer. Instead, I will provide a few levels to watch.
SFIX broke over downtrend resistance (blue line) earlier this month, then formed a double bottom near $18. This level now becomes a must-hold mark. Below could usher in a move down to its 52-week low at $16.05.
On a rally, I want to see Stitch Fix reclaim its 50-day moving average and preferably, the $21.75 area. Above $22 and SFIX can see the 200-day moving average.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities.
