It was a quiet Monday as the dog days of August wear on. We’ll get a number of retail earnings this week, which should command some of investors’ attention. With that in mind, let’s look at a few top stock trades in the meantime.
Top Stock Trades for Tomorrow No. 1: Barrick Gold (GOLD)
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Barrick Gold (NYSE:GOLD) caught an upside jolt on Monday, as it was revealed that Warren Buffett’s Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) has taken a stake in the company.
Back in June, investors had a beautiful opportunity to buy this name on a pullback to the February high. From there, it promptly reversed and began a multi-month uptrend (blue line) before breaking down last week.
That breakdown was short-lived though, with the stock reversing higher on Monday’s news. $30 has been a tough spot for GOLD stock. Over it puts this month’s high in play at $30.69.
Above that mark puts the two-times range extension in play at $32.25. On the dip, though, see that the 50-day moving average continues to hold as support.
Top Stock Trades for Tomorrow No. 2: JD.com (JD)
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JD.com (NASDAQ:JD) is rallying on Monday, up over 8% on the day due to better-than-expected earnings. Shares are now contending with the 261.8% extension near $66.
If shares can clear this area, it opens up more upside potential. Specifically, it puts the July high in play at $69.18, followed by the three-times range extension at $70.62.
On the downside, a break of the 50-day moving average would be concerning. This level has been support dating back to late March. To lose this mark, as well as the July low at $58.76, would be troublesome for longs.
That is the setup in JD.com in a nutshell: Above $66 puts $70-plus in play, while below the 50-day moving average could be trouble.
Top Stock Trades for Tomorrow No. 3: General Motors (GM)
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General Motors (NYSE:GM) has quietly found some momentum. While shares are backing off session highs, the stock is ended the day Monday up nearly 8%.
If it can close the day above $28.91 — which it should — GM will notch its first close above the 200-day moving average since the first trading day of 2020. That’s right. GM has just one close above the 200-day moving average this year.
In any regard, a close above this mark puts the June high in play near $32, followed by a possible gap-fill up toward $34 from February.
As much as I’d love to see the 200-day moving average hold as support, this mark just rejected GM stock last week. Therefore, the 50-day moving average and uptrend support (blue line) are much better barometers for support. Below puts the July low in play at $23.33.
Top Stock Trades for Tomorrow No. 4: Nvidia (NVDA)
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Nvidia (NASDAQ:NVDA) was another big mover on Monday, up almost 7% on the day. The analysts are gushing about this name, which has been roasting higher from the March lows.
With earnings on deck later this week, shares of Nvidia are knocking on the door to $500. Above this level, and I will be watching the $535 level — which is the 261.8% extension.
On the downside, however, see if the two-times range extension can buoy the share price on a dip — before or even after earnings. That comes into play near $450. Below this mark may present bulls with an interesting buy-the-dip opportunity.
That comes into play between $405 and $425, where NVDA finds the 50-day moving average and uptrend support (blue line). Let’s see how shares end the week once we see the earnings reaction.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret is long NVDA.
