The fireworks just keep going off, with the S&P 500 scorching higher and hitting another record high. With that in mind, let’s look at a few top stock trades as we finish off Wednesday’s trading session.
Top Stock Trades for Tomorrow No. 1: Peloton (PTON)
In any regard, this stock broke out on Friday — clearing the $72.50 level and ripping higher. Now clearing the 361.8% extension and $90, I would love to see this name gravitate toward $100.
If it can get there, it will pass the four-times range extension near $95 and hit the 423.6% extension at $99.54. Some traders use the latter extension as the last extension in a rally before considering it too greedy to stay long.
On the downside, though, I’d love a move back down toward the $72 breakout level — particularly if that former resistance level acts as support.
Top Stock Trades for Tomorrow No. 2: Docusign (DOCU)
Docusign (NASDAQ:DOCU) has also been on fire. The price action makes it look like the move came on earnings, but it’s actually ahead of earnings later this week. It also makes it hard to buy ahead of the event.
Ultimately, I would love a dip down to the $220 to $230 area that finds support. If that’s the case, it’s likely a buy-the-dip opportunity for bulls. On a deeper decline, the 50-day moving average and uptrend support (blue line) are in play.
Other than that, it’s hard to do much with Docusign ahead of the number. Over $290, and $300 is in play. But after correcting down to $250 today, the ranges are getting very wide for traders, which makes it hard to manage the risk.
Top Stock Trades for Tomorrow No. 3: MongoDB (MDB)
MongoDB (NASDAQ:MDB) is another one that continues to move well. Shares recently broke out over downtrend resistance (blue line) and on Tuesday, they broke out over the prior all-time high.
Now correcting lower ahead of earnings, this former high near $244 is acting as support. On a break of this level — either pre- or post-earnings — look for support from the backside of prior downtrend resistance and the 50-day moving average. Below could put $190 range support in play.
On the upside, however, let’s see if shares can clear the current high and get to the two-times range extension at $271.33. Above that is the 261.8% extension at $326.18.
Top Stock Trades for Tomorrow No. 4: SmileDirectClub (SDC)
SmileDirectClub (NASDAQ:SDC) shares are catching a powerful move to the upside, rallying more than 25%. However, the stock is now running into a key area.
The $10 mark has been resistance since May. With shares there now though, the potential for a breakout is palpable. Almost immediately, it would put a gap-fill up toward $11 in play.
From there, shares could continue toward the 2020 high near $15.50.
On the downside, though, keep an eye on the $8.15 to $8.40 level. There SDC stock finds a cluster of its key moving averages. It would also put the stock below Wednesday’s low and open the stock up to a retest of the $7 to $7.25 area.
Top Trades for Tomorrow No. 5: Amarin (AMRN)
Amarin (NASDAQ:AMRN) investors did not get the reaction they were hoping for on Wednesday, with shares plunging more than 30%.
Here’s what we need to see now.
On the upside, let’s see if AMRN can recapture key support near $6.30. Above puts the 50-day moving average, and a gap-fill up toward $7.25 in play. If it clears that — which is a tall order at the moment — then $8 resistance is on the table.
On the downside, though, let’s see if the lower high (and notable reversal) from April 6 acts as support near $4.50. Below puts the $3.95 to $4 area in play, which is the 2020 low.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article.