The S&P 500 finally did what the Nasdaq Composite did months ago, which is finally hit new all-time highs. With that in mind, let’s look at the charts to see what top stock trades Tuesday had to offer.
Top Stock Trades for Tomorrow No. 1: Amazon (AMZN)
Amazon (NASDAQ:AMZN) stock was setting up for either a breakdown or a breakout. It flirted with the former earlier this week, but now the latter is playing out on Tuesday.
Shares exploded through the $3,240 area — although it did check back to this mark intraday — as Amazon is now north of $3,300.
The stock is trading up into the three-times range extension at $3,303 and is close to new all-time highs at $3,344. If AMZN can clear these marks with authority, it puts the $3,500 area in play. Above that and the 361.8% extension is on the table near $3,649.
On the downside, though, a break of uptrend support and the 20-day moving average would be a negative development for bulls.
Top Stock Trades for Tomorrow No. 2: Home Depot (HD)
With that said, it’s not exactly a bloodbath either, with Home Depot shares down about 1% on the day.
Let’s see if shares can take out the post-earnings high — which is actually now the all-time high — at $290.58. Above that opens the door to $300, then the 161.8% extension, up at $308.82.
On the downside, however, a move below $280 puts the 20-day moving average in play — followed by the 123.6% extension near $269 Below that, and the breakout level near $260 is on the table.
Keep it simple, and go level by level.
Top Stock Trades for Tomorrow No. 3: Walmart (WMT)
Those that liked the result and want to take it on as a trade, see that it stays above the $130 area. That will keep shares above the $132 breakout level, the 20-day moving average and uptrend support (blue line).
On the upside, shares hit the 161.8% extension up at $137.14, if measuring from the March low to the November high (the prior 52-week high). A close over this mark puts the two-times range extension in play, up at $145.75.
I would love to get a post-earnings dip in this name that settles in around $132 or so, giving investors a great risk/reward long opportunity.
Top Stock Trades for Tomorrow No. 4: Bloom Energy (BE)
Bloom Energy (NYSE:BE) has a very solid chart setup, with shares ripping higher by almost 20% on the day.
The stock reclaimed the key $14 level last week, then reclaimed the 20-day moving average on Tuesday. From here, it leaves the door open to the $19 to $20 area. Above that, and the 161.8% extension is in play at $21.62.
On the downside, though, I want to see shares find support at the 20-day moving average and the $14 mark. Below likely puts the 50-day moving average in play.