After a sleepy session on Monday, stocks got off to a strong start on Tuesday and rallied hard into the afternoon. Let’s look at a few top stock trades for Wednesday.
Top Stock Trades for Tomorrow No. 1: Roku (ROKU)
Roku (NASDAQ:ROKU) shares are scorching higher, now more than 30% off its recent lows. With its move over $129.55 on Tuesday, Roku stock was able to reclaim its 50-day moving average.
So what do bulls do now? As I’ve said before, when you find a high-growth stock that you like, begin accumulating it on its eventually massive decline.
Should ROKU stock continue higher, see if it can reclaim the 78.6% retracement near $144. On a pullback, I want to see former uptrend support (blue line) hold as support, as well as the 20-day moving average. If they fail, see how it handles the 61.8% retracement.
If it holds as support, Roku may continue higher. Below and we could see $110.
Top Stock Trades for Tomorrow No. 2: Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) made an aggressive move, ripping over $188. It was exactly the move we’ve been waiting for, and NVDA isn’t wasting any time continuing higher. Shares pushed right through $193 to new 2019 highs.
On a move over $200, see if shares can run to the 50% retracement near $208. Above that and the gap between $220 and $225 could be on the table.
Should shares rest or pullback, see that prior resistance between $188 and $193 holds as support. If not, NVDA will need more time to set up again.
Top Stock Trades for Tomorrow No. 3: Alphabet (GOOG, GOOGL)
The move launches GOOGL over the 78.6% retracement and puts it into the upper consolidation zone from September. The high from that range was $1,248. Over it and the post-earnings high of $1,268 is on the table. Above that and GOOGL’s all-time high near $1,297 is possible.
On a decline, see that uptrend support (blue line) buoys the stock price. Falling below that puts the 50-day moving average on the table.
Top Stock Trades for Tomorrow No. 4: AT&T (T)
T stock did a great job consolidating those gains, as it put in a series of higher lows (blue line). However, it had trouble pushing through resistance at $37.50, forming what’s known as an ascending triangle, a bullish technical pattern.
Now pushing through, see that $37.50 supports T stock, which might now make a move for its prior 52-week high at $38.22. Getting over that level opens the door to $40.
Top Stock Trades for Tomorrow No. 5: JPMorgan (JPM)
Sitting between recent support at $110 and its high at $119.44 before earnings, JPM was setting up for a move into either resistance or support. For the bank, it’s the former.
However, instead of getting tripped up by its former 52-week high, JPM leapt right over it. Now, for as good as JPM is, the bank stock has had trouble maintaining a sustained rally. From here, let’s see that JPM stays above its former high. If it does, more highs could be on the way.
Below $118, investors should be more cautious. If it can get over Tuesday’s high, however, there’s a Fibonacci extension up near $128.