Market enjoyed another steady day of gains on Tuesday, with the S&P 500 grinding higher despite tech stocks struggling. With that in mind, here’s a look at a few top stock trades.
Top Stock Trades for Tomorrow No. 1: Coca-Cola
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Coca-Cola (NYSE:KO) shares are reacting modestly higher to earnings, ending the day Tuesday up 2.3%.
Shares have been slowly but surely grinding higher, as evidenced by uptrend support (blue line). Additionally, the stock has been holding up over the 20-day and 50-day moving averages.
Now moving higher, Coca-Cola stock is filling its June gap up near $48. A move over $48 puts the June high in play at $49.52, as well as the 200-day moving average.
If shares move lower, investors need to see uptrend support buoy the stock. Below $44 could accelerate the selling pressure.
Top Stock Trades for Tomorrow No. 2: IBM (IBM)
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International Business Machines (NYSE:IBM) gapped higher on earnings, but is having trouble holding its gains. Shares ended the day on Tuesday down 0.25%.
Like Coca-Cola, IBM filled its June gap up to $130, where it also finds the 61.8% retracement.
If it can maintain above its 200-day moving average and reclaim $130, it puts the June high in play at $135.88. Above that and the 78.6% retracement is in play at $140.98.
If IBM fails to hold the 200-day moving average, it puts the 20-day and 50-day moving averages in play. Below puts $115 on the table. If that fails as support, selling pressure could accelerate in IBM.
Top Stock Trades for Tomorrow No. 3: eBay (EBAY)
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eBay (NASDAQ:EBAY) initially opened higher after coming to terms on a $9.2 billion deal for its classifieds business. Naturally, investors bid it higher, but the rally was short-lived.
Now down over 3% on the day, eBay shares are under pressure after having lost the 10-day moving average. For now, the 20-day moving average is acting as support. If it continues to buoy eBay, look for a move back up toward $60.
What bulls really want to see is an eventual rotation back over the 261.8% extension at $59.97, as well as the current 52-week high at $61.06. Above that puts the three-times range extension in play near $65.
Below the 20-day moving average puts the two-times range extension in play near $52, followed by the 50-day moving average. Keep in mind, eBay reports earnings later this month.
Top Stock Trades for Tomorrow No. 4: United Airlines (UAL)
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United Airlines (NASDAQ:UAL) will report earnings on Tuesday after the close. Thus far, the technicals are mixed.
On the plus side, UAL is still well off the May lows. However, after the current pullback, United is also well off the highs. That makes it tough for investors.
Last week, shares broke out over downtrend resistance (blue line). Despite the move, shares are struggling with the 20-day moving average while clinging to the 50-day moving average. On the downside, bulls don’t want to see a move through the June low, at $27.95. That could create a larger selloff.
On a rally, look to see if UAL stock can clear last week’s high at $36.78. Over it puts $40 in play, then the June high at $48.95.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret did not hold a position in any of the aforementioned securities.
