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)
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Shares of General Motors (NYSE:GM) are rallying on Wednesday after reporting quarterly earnings. However, the stock has a lot of work to do before bulls can really trust it on the long side.
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)
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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)
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Man, all IBM (NYSE:IBM) needed was a new CEO and a big acquisition to get some mojo. Shares are on fire lately, but this move has been in the making for quite awhile.
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)
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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.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long TWLO.
