Traders went to bed last night expecting the markets to puke as tensions with Iran increased. Turns out, the markets actually ripped higher on Wednesday, hitting new highs. Let’s look at a few top stock trades.
Top Stock Trades for Tomorrow No. 1: Uber (UBER)
However, there was more happening than that. Shares had formed an uptrend support mark (purple line) from the November lows. Once Uber stock broke out over downtrend resistance, it should have caught investors’ eyes. When it pulled back to uptrend support and held, though, that was the sure-fire signal that bulls were back in control.
While Uber is now over its 20-day, 50-day and 100-day moving averages, shares are running into the 150-day moving average, as well as the 61.8% retracement. Should shares pull back, look for buyers to step in and buy the dip. Otherwise, Uber may need to rest for a bit longer.
That is, unless shares breakout over the 150-day moving average, putting $36 on the table. Let’s wait and see with Uber stock.
Top Stock Trades for Tomorrow No. 2: Tanger Factory Outlet Centers (SKT)
Tanger Factory Outlet Centers (NYSE:SKT) shares are erupting higher. At one point in the day, shares were up 14%. Better-than-expected comp-store sales numbers out of Macy’s (NYSE:M) might be a catalyst, but other than that, there’s not much of an explanation so far.
In any regard, the stock took out a number of major marks in the move. First, SKT broke out over downtrend resistance (blue line), then it reclaimed channel support (purple line). It also reclaimed the 20-day, 50-day and 200-day moving averages.
Shares did slow down once they approached $17. I don’t know how this thing will trade in the coming days. However, if it continues higher, see that it clears $17, which will give it more momentum to the upside.
On the downside, I’d love to see it hold up over the 200-day, but realistically, as long as it holds channel support, SKT is okay on the long side.
Top Stock Trades for Tomorrow No. 3: Veeva Systems (VEEV)
Let my start by saying that I love Veeva Systems (NYSE:VEEV) from a business perspective. It’s got a great product and great growth. That said, the charts look ugly.
Veeva is setting up in a descending triangle pattern. That’s where downtrend resistance (blue line) is squeezing shares lower against a static level of resistance (black line). In these setups, unbiased traders generally look for a breakdown through support.
Of course, VEEV stock could breakout over downtrend resistance and cause the short setup to fail. But as of now, a break below $138 to $139 could trigger a potentially larger move lower.
The trend has been working against VEEV since July, but the stock has done well longer term and the markets are near the highs. Maybe bulls can save Veeva in the short term. If not though, shorts may have their way first.
Top Stock Trades for Tomorrow No. 4: Walgreens (WBA)
Shares of WBA plunged below uptrend support (blue line) and are hovering near $56 now. The truth is, Walgreens bulls lost control over the past two months, as shares have struggled to rebound after the drop from its November highs.
In any regard, not all hope is lost. While momentum has been sapped, bulls will now want to keep the stock above the 200-day moving average. Above today’s high, and perhaps the stock can make a rebound back toward its prior trend and the 20-day moving average.
Below the 200-day puts the 78.6% retracement on the table. Below that and WBA will be in no man’s land.