After a strong finish last week and with equities still hanging around all-time highs, Monday’s action continues to consolidate those gains. Here’s a look a few top stock trades.
Top Stock Trades for Tomorrow No. 1: Starbucks (SBUX)
Starbucks (NASDAQ:SBUX) stock was unstoppable for about a year, doubling from its summer 2018 low to its summer 2019 high. Over the last 10 weeks though, SBUX has been ice cold.
Shares have broken down without reason, crashing through prior support levels and moving averages. The company even delivered strong earnings results in late October, as highlighted on the chart.
The stock has been finding its footing here near the 200-day moving average, though. It gives investors an excellent risk/reward, now down almost 20% from its highs.
Below the October low of $81.03 (or $80 for those that are comfortable with additional risk), bulls can consider exiting the trade. Below $80 and shares will need more time to set up again on the long side. Above $83 to $84 and the bulls could regain control.
Top Stock Trades for Tomorrow No. 2: JD.com (JD)
Both stocks have made very nice moves through multi-month resistance, while recent pullbacks suggest that these former resistance marks will act as support.
Specifically related to JD stock, shares made a powerful breakout through the $32 mark. After chopping around for a few sessions, shares have pulled back toward this level. Buyers instantly stepped in, giving bulls a measurable risk setup, should they take a long position in the name.
Top Stock Trades for Tomorrow No. 3: The Trade Desk (TTD)
What a powerful move investors saw on Monday in several growth stocks, the most notable of which came from The Trade Desk (NASDAQ:TTD).
After a mixed earnings reaction late last week, TTD investors made it clear on Monday: They want to own more Trade Desk.
Shares continue to put in a series of higher lows (blue line), but more importantly, they are pushing through key resistance marks. Both the 50-day and 200-day moving averages had been acting as resistance amid this high-growth selloff.
TTD is reclaiming these marks on Monday. If bulls can maintain the stock above these marks — especially the 50-day moving average — they may be regaining momentum in the name.
The 50-day is a must-hold mark should The Trade Desk pullback. If it continues higher, the 100-day moving average is the next upside target, near $225.
Top Stock Trades for Tomorrow No. 4: Boeing (BA)
BA has a really tough and choppy chart. But Monday’s action is putting in a bullish outside day, which could bode well for continued upside from here. Amid the move, BA is reclaiming all of its major moving averages, as well as the key $360 to $362 area.
Should it continue higher, it puts $375 to $380 on the table, with $390 being a possibility above that. Back below $355 and $335 is possible.