Back to back to back? The S&P 500 continues to plow higher this week as investors keep gobbling up stocks. That said, let’s look at a few top stock trades going forward.
Top Stock Trades for Tomorrow No. 1: General Motors (GM)
In late December, GM broke below the 100-week moving average. Then, in the first few weeks of January, it broke below uptrend support (blue line) — which had been in play for more than a year.
That said, I want to see GM reclaim the 100-week from here, at $35.75. From there, it would garner some trust among bulls, putting the 50-week moving average and downtrend resistance (purple line) in play. Above that, and a move into the upper $30s is possible.
On the downside, see if $33 holds as support. Below, and GM may fall into no man’s land.
Top Stock Trades for Tomorrow No. 2: Twilio (TWLO)
Twilio (NYSE:TWLO) reports earnings after the close — and man, until Wednesday, this one had been red hot. But, it’s likely just bulls locking in profit ahead of a volatile event. And that makes sense.
What happens next will be important, though. On a negative reaction, I really want to see the $120 to $122 area hold as support. Not only are the 20-day and 200-day moving averages in this area, but it was also recent resistance. Additionally, this level was prior support during Twilio’s prior rally.
Below, and the 50-day moving average is possible. On the upside, see if Twilio can take out the $135 mark — while above puts $150 on the table.
Top Stock Trades for Tomorrow No. 3: IBM (IBM)
Notice IBM’s uptrend support mark, as that’s been guiding shares higher since Q2 2019 (blue line). After bursting through resistance, this one has been a relative strength monster. Despite the market’s woes, IBM stock has been up for five straight weeks.
Keep it simple with IBM now. Above $156, and $161-plus is possible. On a pullback, though, see that $150 acts as support.
Top Stock Trades for Tomorrow No. 4: Peloton (PTON)
Like Twilio, Peloton (NASDAQ:PTON) is also set to report earnings after the close. Also like TWLO, shares are under pressure ahead of the results.
Should shares dip on the print, I would really like to see $31 hold as support. At that level, it has the 50-day moving average and uptrend support (blue line) in play. If they fail to buoy the stock, let’s see if $29 can support PTON. This is the IPO price, and has played a notable role over the past few months.
On the upside, let’s see if PTON can take out $35. Above puts the 52-week high of $37.02 on the table. Above that, and $40-plus is possible.