Equities burst higher on Monday, as investors enter a short trading week ahead of the Thanksgiving holiday. Here’s a look at our top stock trades for Tuesday.
Top Stock Trades for Tomorrow No. 1: Nvidia (NVDA)
What a beautiful move we’re seeing in Nvidia (NASDAQ:NVDA) on Monday, up more than 4%. Shares are vaulting over former resistance and hitting $220.
The move comes as little surprise, given that Nvidia stock was forming an ascending triangle. That’s a bullish setup where rising uptrend support (blue line) squeezes the stock price against a static level of resistance (black line).
We outlined this setup just last week here on InvestorPlace. With it coming to fruition, let’s see now if NVDA stock can get to our upside target near $227.50. On a pullback, see that $212.50 holds as support.
Top Stock Trades for Tomorrow No. 2: Tesla (TSLA)
Tesla (NASDAQ:TSLA) stock was riding high into its Cybertruck unveil last week. On Friday, shares pulled back in the first trading session after the unveiling, as investors reacted to the futurist vehicle.
After tweeting that the Cybertruck had logged 200,000 pre-orders, Tesla stock bounced back a bit on Monday. However, shares still lack momentum. Now what?
Since the event, we have a nice two-day range on the chart, making the setup somewhat simple. If it falls below Friday’s low and the $330 mark, TSLA stock has downside to $310. Over Monday’s high and it can fill the gap up over $350.
Those who take the downside short or the upside long can use the opposite entry as their stop-loss. (For example, if they’re shorting TSLA on a move below $330, bears can use Monday’s high as their stop-loss).
Top Stock Trades for Tomorrow No. 3: Gilead (GILD)
What a strong move Gilead Sciences (NASDAQ:GILD) made on Monday. Earlier this month, shares burst through a bevy of moving averages (black arrow). Last Thursday, shares pulled back to these moving averages, and ripped higher after finding them as support (purple arrow).
This served as a clue to investors that more upside may be coming. Now ripping through downtrend resistance, we’re seeing that upside play out. Let’s see if GILD can push up to the $67.50 to $68 area. Its 52-week high sits just under $73.
On a pullback, bulls need to see former downtrend resistance hold as support.
Top Stock Trades for Tomorrow No. 4: IWM ETF (IWM)
The iShares Russell 2000 ETF (NYSEARCA:IWM) has spent all of November consolidating its recent rally to range resistance.
With Monday’s 2% rally, we finally got the breakout we were looking for. Now see that the IWM holds the $158 to $160 area on any future pullbacks. While it’s a little early to get too ahead of our skis, this move is very noteworthy.
Small caps have been significantly lagging their stock-index peers. To hit new highs, IWM will need to hurdle $173 — although that’s quite a ways from here. Let’s take it one day at a time, but for now, IWM looks good on the long side and may gain momentum into year-end.
No. 5: Kirkland Lake (KL)
Unfortunately, there’s really not much to say that will give any solace to those who came in long. If shares can hold Monday’s low and reclaim the 200-day moving average, perhaps a rebound into the mid-$40s is possible. Below the 61.8% retracement near $38.50 and $36 is possible.
It may take a few days for KL stock to shake out. Be careful in the meantime.