Markets were indicating a lower open on Tuesday, but quickly pushed higher despite more stalling in Washington D.C. for another round of economic stimulus. With that in mind, let’s look at a few top stock trades for Wednesday.
Top Stock Trades for Tomorrow No. 1: Twilio (TWLO)
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Twilio (NYSE:TWLO) shares have been raging higher ever since the company reported earnings in May. After a big rally from the March lows, shares gained more than 50% in just a few days after that report.
Now, the company’s quarterly results are due up again after the close. The stock has been a beast, running from about $150 after that first post-earnings pop to more than $280 as of Tuesday’s close. It’s up four-fold from the March lows!
Unfortunately, shares have rallied right up to the 261.8% extension, near $284. An attractive (and non-euphoric) reaction would be solid results and a subtle pullback to the 20-day moving average and uptrend support (blue line). On a deeper correction, we may see TWLO pay a visit to the 50-day moving average.
If shares burst higher once again, though, it puts the three-times range extension in play up at $315.
Top Stock Trades for Tomorrow No. 2: Take-Two Interactive (TTWO)
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After struggling to keep up with some of its peers, Take-Two Interactive Software (NASDAQ:TTWO) has caught fire. Shares finally broke out over $150 last month, and have only gained momentum since.
Ahead of earnings, shares rallied up to the two-times range extension, then gapped higher on the results that were released before the open. However, shares look indecisive today, putting in a doji candle up here at new highs.
If the stock pulls back, let’s see if the two-times range extension acts as support at $166.72. Below puts the $160 level and 20-day moving average in play.
If TTWO takes out its current high, however, shares could rally to the 261.8% extension up at $187.34. Above that and a move toward $300 will be on the table.
Top Stock Trades for Tomorrow No. 3: Gold (GLD)
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Gold just keeps on moving higher, as metals continue to attract buyers. In June, the SPDR Gold Trust ETF (NYSEARCA:GLD) broke out over $165 resistance. It was a quiet breakout, though, with shares then consolidating near $170.
However, the move from that point has been fast and furious. Shares galloped from $170 to $182 in a hurry, before consolidating the run. Gold continued to drift higher, forming what’s known as an ascending triangle pattern.
That is now resolving to the upside, with a break over $186 to new highs. I want to see whether the GLD can climb to the 261.8% extension at $196.99. An overshoot puts $200 in play.
A move below $185 could be a signal that the metal has lost momentum.
Top Stock Trades for Tomorrow No. 4: Wynn Resorts (WYNN)
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Like Twilio, Wynn Resorts (NASDAQ:WYNN) will also report earnings after the close. However, the resemblances between two stocks ends there.
Wynn has been trending lower since topping out in June, while shares are now clinging to $70 support. A break of this level and a move below the June low at $67.54 would put the 23.6% retracement in play at $63.29.
Below that, and Wynn could fill the gap down toward $56.
On the upside, however, let’s see if Wynn stock can clear downtrend resistance and the 20-day moving average. Above puts the 50-day moving average in play, followed by the July highs near $87. Above that puts the 200-day moving average and the $100 level on the table.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long GLD.
