Stocks got off to a hot start on Monday and didn’t slow down much throughout the session. With that in mind, let’s look at a few top stock trades for the rest of the week.
Top Stock Trades for Tomorrow No. 1: Square (SQ)
Look at how well Square (NYSE:SQ) stock traded from April through August. The 10-day moving average continued to guide the stock higher, as did uptrend support (blue line).
Shares faltered in early September, breaking below these trend marks. It’s worth noting that eventually this type of price action is bound to happen. A stock cannot rally forever.
Thankfully, the 50-day moving average stepped in as strong support, propping Square stock up until it was able to reclaim the 10-day moving average. On Monday, the stock was able to break out over its prior highs and the 261.8% extension.
If we are going back to a trending market, look for dips down to the 10-day moving average to be bought and for SQ stock to push higher. Specifically, let’s see if it can rally to the three-times range extension near $197 and tag $200.
Top Stock Trades for Tomorrow No. 2: Regeneron (REGN)
Regeneron (NASDAQ:REGN) shares ripped higher on Monday, ending the day up more than 7%. The rally was enough to send the stock over a few key levels.
Specifically, Regeneron stock was able to reclaim the key $575 level, downtrend resistance (blue line) and the 10-day and 50-day moving averages. What a move — but now it needs to hold.
If REGN stock closes below the 50-day moving average, look for a retest of the 10-day moving average and/or the $575 mark. Below $575 would not be very promising. It would put the September lows back in play around $540, as well as the 200-day moving average.
On the upside, however, let’s see if Regeneron can clear Monday’s high near $620 and push back up toward 2020 resistance near $650 to $660. Above the current high could put $697 in play, which is the 123.6% extension from the recent low to the July high.
Top Stock Trades for Tomorrow No. 3: Aphria (APHA)
Cannabis stocks caught a bid on Monday, with Aphria (NASDAQ:APHA) ripping more than 14% on the day.
Notice the relevance of the of the 200-day moving average so far this year. This mark recently held as support, propelling Aphria higher on Monday. Shares reclaimed the 50-day moving average in the process.
If it can clear $5, let’s see if this name can get some pre-earnings momentum working in its favor. I would love for another push up toward $6, which has been stiff resistance so far this year. That’s with and without the novel coronavirus playing a role, by the way.
On the downside, a break of the 200-day moving average is a concern.
Top Stock Trades for Tomorrow No. 4: Tilray (TLRY)
Of the two cannabis stocks here, Tilray (NASDAQ:TLRY) is the lower quality play in my view. However, that’s not stopping the stock from having its own notable rally.
Shares are reclaiming the 10-day moving average on the move, a level of resistance for the last two months.
If Tilray stock can squeeze higher, look for a possible move up toward the 50-day moving average and downtrend resistance (blue line). Above that puts $7 back on the table, followed by a potential test of the 200-day moving average.
On the downside, though, look for a retest of the 10-day moving average. Below puts the September low in play at $4.41, followed by the key $3.75 level.
On the date of publication, Bret Kenwell held a long position in APHA.