Stocks cautiously climbed higher on Monday, as investors continue to test the validity of the current rebound. That said, let’s look at a few top stock trades.
Top Stock Trades for Tomorrow No. 1: Zoom Video (ZM)
Zoom Video (NYSE:ZM) tried pushing to new 52-week highs on Monday, but was unable to do so. It leaves shares being rejected from the $160 mark — again — as bulls wonder if ZM is losing momentum.
If ZM does lose momentum, we could see a pullback to the $125 to $130 area, which was previously resistance. It could also catch a bounce from its rising 20-day moving average. Below this area puts the $105 mark and the 50-day moving average in play.
Above $165 could fuel even more upside in Zoom Video.
Top Stock Trades for Tomorrow No. 2: Slack (WORK)
When Slack (NYSE:WORK) reported earnings a few weeks ago, shares plunged to a low below $16. After several tests of this level, though, shares found this mark as support, surging through $20 and climbing up toward $30.
However, this $28 to $30 has been a difficult area of resistance for Slack stock. If it breaks, WORK could rip higher, with a move into the mid-$30s in the realm of possibilities.
However, if this area continues to act as resistance, look for a pullback down to the 50-day and 100-day moving averages, between $23 and $24. Below that and $20 is back in play.
Given how hot this name has been, I wouldn’t expect it to break below $20, which was pre-earnings support. If by chance it does, though, it puts $16 in play.
Top Stock Trades for Tomorrow No. 3: Twitter (TWTR)
Twitter (NYSE:TWTR) shares remain under pressure, although at least there is a low to measure against.
The $26 to $28 zone has been support for several years, as has the 200-week moving average. It’s clear that for now, the latter is acting as resistance, while Twitter is having trouble reclaiming the former as well.
It will need reclaim both marks in order for bulls to regain control. Below $26 and sellers can continue to drive the narrative here. Below $24 and momentum may drive shares back down toward $20.
On a move over $28, $30 is on the table. Above that and $34 to $35 is possible.
Top Trades for Tomorrow No. 4: Abbott Labs (ABT)
Despite good news about its new coronavirus testing kit, Abbott Labs (NYSE:ABT) was unable to push through resistance on Monday. Shares still put together a solid rally, though, up 7% at the time of this writing.
Since losing the $82 mark in late-February, this level has been acting as resistance. If ABT stock could have held this mark on Monday, I would have felt better about it on the long side. That’s even as the 50-day, 100-day and 200-day moving averages between $83 and $84 are acting as resistance.
Over $82 puts this trifecta back in play. Over its major moving averages and a gap fill up toward $88 is possible. Below $82 keeps $76 on the table. Below that and $70 or lower is possible.
Top Trades for Tomorrow No. 5: 3D Systems (DDD)
Go ahead and count 3D Systems (NASDAQ:DDD) among those that are posting solid rebounds from this month’s low.
Over $7.50 and DDD can continue higher, potentially up to its 200-day moving average at $8.81. Above that and the 100-day and 50-day moving averages are possible.
Below $7.50 and $6.50 is in play. Below that and — yep, you guessed it — $5.50 is possible. Keep it simple whenever possible.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, he did not hold a position in any of the aforementioned securities.