After more cases of the novel coronavirus were registered over the weekend, stocks fell about 2.5% in early trading. By the afternoon, though, the S&P 500 was in positive territory. With that in mind, let’s look at some top stock trades after the reversal.
Top Stock Trades for Tomorrow No. 1: Walmart (WMT)
In fact, despite the bounce in the overall market, Walmart stock ended the day on Monday basically flat.
Shares are flirting with the 200-day moving average, while the 50% retracement continues to hold as support. As weak as this comes across, it could give bulls a quick bounce trade back up toward $121 with a decent risk/reward.
A move below the 50% retracement, and bulls can stop out. On a bounce, however, look to see if shares can get back to $121 and downtrend resistance (blue line). Above that puts the 50-day moving average in play.
A break of the 50% retracement puts the 38.2% retracement in play near $113.
Top Stock Trades for Tomorrow No. 2: General Motors (GM)
Like Walmart, General Motors (NYSE:GM) is giving mixed signals and tilting toward the bears’ direction.
Shares broke below uptrend support (blue line) and the 20-day moving average after gapping lower this morning. The move comes a few days after the 200-day moving average swiftly rejected the stock.
On the plus side, though, shares are working on reclaiming the 20-day moving average and the 78.6% retracement near $28. Over $28, and bulls can try for a retest of the 200-day moving average.
A break of last week’s low is a bearish development and puts the $24 area in play.
Top Stock Trades for Tomorrow No. 3: Twilio (TWLO)
Twilio (NYSE:TWLO) continues to trade quite well, consolidating its monstrous post-earnings move by trading sideways.
With Monday’s jump, it puts Twilio up near $203 resistance as shares reclaim the 20-day moving average. Uptrend support (blue line) continues to guide Twilio stock higher, with bulls now looking for a breakout over resistance.
Over resistance puts the highs in play near $210, with a move higher sending it to fresh breakout territory. A break of uptrend support, though, puts $175 to $180 on the table. For now, I really like TWLO stock on the long side.
Top Trades for Tomorrow No. 4: Nio (NIO)
Electric car stocks are maintaining their charge, evidenced by Nio (NYSE:NIO) climbing about 12% on Monday.
Shares are working on their fourth-straight week of gains, after the stock pushed through major resistance at $5.50 earlier this month.
From here, let’s see if Nio stock tests up to the 50% retracement at $7.50 or down to hopeful support at $5.50. Over $7.50, and shares can move up toward $9 — where it will find the 61.8% retracement.
Top Trades for Tomorrow No. 5: TakeTwo Interactive (TTWO)
Take-Two Interactive Software (NASDAQ:TTWO) continues to hold up pretty well. Last week, shares held up well despite strong selling pressure in the overall market. That’s as former resistance at $132.50 is acting as support.
If TTWO stock can go weekly-up and rotate over $138, it could send Take-Two stock up into the $142 to $144 area. Above that puts $150 in play, the high from May.
Below $132.50 and the 50-day moving average, however, puts the 200-day moving average on the table.