Another quiet day on Wall Street overshadows some of the more noteworthy moves we saw in individual stocks on Wednesday. Let’s look at a few top stock trades.
Top Stock Trades for Tomorrow No. 1: Shopify (SHOP)
Remember when we were looking at Shopify (NYSE:SHOP) earlier this month? We said shares either needed to rally through $375 resistance or support needs to give way at $360.
If support gave way, we were looking for a test of $340. If it was resistance that gave way, we were looking for $400.
Well, here we are with the latter scenario playing out perfectly, with Shopify over $400. Now let’s see if bulls can run SHOP stock to new all-time highs. On a pullback below $400, see if roughly $390 is support. Falling below that puts prior resistance on the table.
Top Stock Trades for Tomorrow No. 2: Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) shares are hitting their highest levels since October 2018. After breaking out over $190, shares marched up to the $210 to $220 area, where after a few weeks, shares again broke out.
Nvidia is still working through its Q4 bludgeoning from last year, where it fell from $290 to $130 — a 55% drop — in just 12 weeks. In that span, 10 weeks were in negative territory. It was a tough time to be a shareholder.
2020 could be a big year for Nvidia, but the stock will need avoid giving up a bulk of these gains if it wants to keep pushing higher. Holding the 10-week moving average and uptrend support would be a good start.
However, trends don’t last forever. Should NVDA break below it, I want to see the $210 to $220 area hold. Below there and $190 must hold. Otherwise Nvidia may be in trouble.
Top Stock Trades for Tomorrow No. 3: FedEx (FDX)
There’s not much to say about FedEx (NYSE:FDX) at this point. The company missed on sales and earnings estimates, as revenue fell year-over-year. Management cut its full-year outlook (again), while operating margins were cut in half year-over-year.
The fundamentals are ugly, and so is the chart.
If the bulls had any fight in the them — and why should they when there are plenty of better picks out there right now? — they would have held the $150 mark. Below that level now puts $140 and below on the table, with the October low sitting at $137.20.
On a rebound, FDX needs to reclaim $150, but I wouldn’t trust it below downtrend resistance (blue line) and the 200-day moving average.
Top Stock Trades for Tomorrow No. 4: Match Group (MTCH)
I flagged this one on Twitter (NYSE:TWTR) and had to put it here too, because it looks so nice. Match Group (NASDAQ:MTCH) continues to tiptoe higher after breaking out over the 200-day moving average and downtrend resistance last week.
That was a big step for bulls, but there’s still work that needs to be done. They can start by clearing the recent highs near $73. Above that and the 38.2% retracement at $73.30 is the next hurdle on the track.
On the downside, a close below the 200-day moving average is concerning, while a close below downtrend resistance (blue line) is a sign to use caution.
Top Stock Trades for Tomorrow No. 5: Yeti (YETI)
Yeti (NYSE:YETI) was catching traders’ attention Wednesday, as the stock hits its highest levels since July.
This one tend to have wide ranges and a fair amount of volatility. And while shares are backing off their highs on Wednesday, the stock’s move above $34 is noteworthy. If shares drop back below $34, it puts the 20-day and 50-day moving averages in play, as well as uptrend support (blue line).
On a continued rally, see if Yeti can clear the area around $36.50 — a trouble spot for the stock in July — and retest its high at $38.11.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long NVDA.
