Stocks started off lower on the day, but turned positive and continued higher on Monday as bulls keep pushing up equity prices. With that in mind, let’s look at a few top stock trades for Tuesday.
Top Stock Trades for Tomorrow No. 1: Nvidia (NVDA)
When I said Nvidia (NASDAQ:NVDA) was a steal at $200, I meant it. But there’s no way I would have thought new all-time highs would be in store less than two months later.
Shares pushed through $280, then found this level as support. It’s also worth pointing out that this level was resistance in 2018. After that, Nvidia stock ran to new all-time highs, clearing the prior 2020 high from February on Monday.
So, now what?
Earnings aren’t for another week and half. So if the stock maintains momentum, it’s possible NVDA will rally into the event. Something like $340 to $350 is not out of the question should the overall market continue higher too — although I wouldn’t necessarily bet on it.
On a dip, though, first see if $300 acts as support, then $280. Below puts the 20-week moving average in play.
Top Stock Trades for Tomorrow No. 2: Tilray (TLRY)
Tilray (NASDAQ:TLRY) reports earnings after the close on Monday. Shares have been acting a bit better lately, but TLRY remains far from the industry favorite.
Back up over its 50-day, though, and TLRY is landing on some investors’ radar.
On a bullish reaction, I want to see a close above $10. That puts the declining 100-day moving average in play, followed by the $15 level.
On a bearish reaction, see if TLRY can close above the 50-day moving average. Below puts the $5 to $6 level in play, while a move below that zone puts the all-time lows on the table. Tilray is too speculative for me to play ahead of earnings, so I prefer to wait until after the event.
Top Stock Trades for Tomorrow No. 3: Datadog (DDOG)
Datadog (NASDAQ:DDOG) has been a beast from the March lows, almost doubling. However, coming in so hot ahead of earnings on Monday after the close makes this one a tough long.
With shares becoming so overbought, it’s hard to chase into the event. That’s despite all of the stock’s current momentum and 138.2% extension up at $58.23. Should DDOG continue higher, it puts the 150% extension up at $60.74 in play.
As for a pullback, I would love a dip down to $50. This was the prior high from February and a dip to this level that acts as support would be highly tempting for longs. Below opens up the possibility for a larger fall, although a decline to this level would already represent a dip of more than 10%.
However, it may prove to be an excellent post-earnings buying opportunity after some profit-taking.
Top Stock Trades for Tomorrow No. 4: Penn National Gaming (PENN)
Penn National Gaming (NASDAQ:PENN) has really come back to life, up about five-fold from the March lows. However, it’s running into some resistance here.
Its pushing through prior 2019 range support pretty well, but up at $20 it will fill a major gap from the decline. Further, it has the 100-day and 200-day moving averages just above, near $21 and $22, respectively. In other words, resistance may not be all that far off.
Above those levels though and technically, $28 is in play. Should they act as resistance, look for support between $17 and $18. Below puts the 50-day moving average on the table.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, he is long NVDA.