The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite all hit new 52-week highs on Tuesday. That said, let’s look at a few top stock trades as the gains keep on coming.
Top Stock Trades for Tomorrow No. 1: Amazon (AMZN)
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Amazon (NASDAQ:AMZN) stock continues to climb higher, now putting together three consecutive weeks in the green (provided it closes higher this week).
The stock is now breaking out cleanly over $2,000, and has hurdled the $2,025 level as well. It’s vital for AMZN stock to hold above this zone now, as it will keep bulls in control following this big-time breakout that’s been in the making for quite some time.
On the upside, see if Amazon can pierce $2,200, with the 1.382% extension of the one-year range up at $2,207. On a pullback, I’d like to see $2,025 to $2,050 act as support — along with the 10-week moving average if it can catch up and clear this level too.
Top Stock Trades for Tomorrow No. 2: Under Armour (UAA, UA)
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Under Armour (NYSE:UAA, NYSE:UA) is getting crushed on Tuesday, down roughly 20% after disappointing quarterly results.
Shares are now plowing through any sort of nearby support, as it gaps below the 50-day and 100-day moving averages, as well as $20 support. Now, bulls must do their best to reclaim and hold the $17 mark. Below keeps the December 2018 low on the table, near $16.50. However, the stock did reach that point earlier on Tuesday — setting a new 52-week low.
Nonetheless, any further below that, and the technicals will be quite damaged.
Top Stock Trades for Tomorrow No. 3: Facebook (FB)
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Facebook (NASDAQ:FB) stock continues to waver, as the recent trading range continues to tighten.
Let’s keep it simple, but nimble. On a move over $213, Facebook stock may have some short-term momentum. In that case, look to see how it handles the $218 to $220 zone. Above it puts $222.50-plus, and the 52-week high on the table.
On the downside, though, a move below the 20-week moving average and $202.50 puts the $190 to $195 level on watch — with the 50-week moving average coming into play near the former.
Top Stock Trades for Tomorrow No. 4: FedEx (FDX)
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Over the last two weeks, FedEx (NYSE:FDX) stock gave investors a “look below” and reverse. Meaning that it broke below support, but then reclaimed it in the next candle. Now squeezing higher, FDX may have trapped some short sellers who were looking for more downside.
For more upside, though, we need to see FDX reclaim the declining 50-week moving average and downtrend resistance (blue line). Over downtrend resistance, and a move to $175-plus is possible.
If resistance holds, however, look for another test of support down near $148 to $150. Below that puts the recent low of $143 on the table, along with the fourth-quarter low of $137.
Top Stock Trades for Tomorrow No. 5: Hasbro (HAS)
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Hasbro (NASDAQ:HAS) opened significantly higher, but has all but given up its post-earnings gains on Tuesday.
It’s been a tough session for bulls to swallow. At the open, HAS stock had gapped above and reclaimed the 50-day, 100-day and 200-day moving averages — as well as notable resistance at $105.
However, the stock was unable to hold those gains — even for a few hours — as HAS stock is now back below all of these marks.
For now, I wouldn’t be a buyer of Hasbro stock unless it’s able to reclaim $105 and its major moving averages. If it can, it puts the post-earnings high near $110 on the table. Above that, and HAS can continue to fill the gap up toward $117.50.
On a dip, however, see if uptrend support (blue line) buoys the stock. Below that puts the $93 mark on the table.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long AMZN.
