Tuesday was shaping up to be a solid day in the stock market until President Donald Trump tweeted, saying they should shelve stimulus bill negotiations. That said, let’s look at a few top stock trades from the day.
Top Stock Trades for Tomorrow No. 1: Alteryx (AYX)
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Alteryx (NYSE:AYX) shares were one of the few bright spots on the Tuesday, ripping more than 28% on updated guidance and a CEO change.
The news sent shares soaring over the 50-day and 200-day moving averages, as well as over downtrend resistance (blue line). Now we’re in sort of a weird state on the charts.
Nimble bulls will want to see the 78.6% retracement hold as support near $142. That’s admittedly a tight leash, but at the very least, we need to see Tuesday’s low at $137.40 hold as support.
Below this mark isn’t the end of the world, but it does put the 200-day moving average in play near $129. Ultimately, bulls want to see AYX stock fill the gap up toward $168. Over $170 and the prior highs are back in play.
Top Stock Trades for Tomorrow No. 2: JPMorgan (JPM)
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JPMorgan (NYSE:JPM) shares began to break down in mid-September, but found buyers near $90.
This level was also support back in June and July. Had it failed, the stock would have had room to decline down toward $82.50. However, it held and now shares are rebounding.
Back above the 20-day and 50-day moving averages now, these two marks are must-hold levels for bulls. Below opens the stock back up to a test of the $90 to $93 area.
On the upside, though, JPMorgan could soon find some resistance. The $102.50 area has been notable, while the declining 200-day moving average is up near $103.50. Above both could put the $110 to $112 area and the June highs on the table.
Top Stock Trades for Tomorrow No. 3: Gap (GPS)
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Man, I wish I had stumbled across Gap (NYSE:GPS) sooner — as in, two weeks sooner.
Look at the way shares powered through $14, hit $18 resistance and pulled back. That orderly dip down to the 10-day moving average is a golden opportunity for longs to pounce.
Support held and quickly sent shares back up through $18. Now we have to see how it shakes out.
If bulls remain in control despite the potential volatility, look for the stock to test the 200-week moving average, then $22. On the downside, I want to see $18 hold as support. A daily close below could put the 10-day moving average back in play, which is support until proven otherwise.
Top Stock Trades for Tomorrow No. 4: Sea Ltd. (SE)
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Sea Ltd. (NYSE:SE) hit new highs on Tuesday before the negative headlines came flying in, but it’s trying to close at new highs too.
A close above $165.23 will get it done, but even if it isn’t able to do so, bulls are still in good shape.
The action has been beautiful in this one. Shares gapped higher in August to new highs, pulled back in September to barely fill that gap and are now ramping to new highs. I love that type of price action.
A move over today’s high near $168 puts $175-plus in play and keeps bulls in active control of SE stock. That means we don’t fade breakouts and we buy dips.
Currently, a decline to the $150 area is likely to be met with buyers at uptrend support and the 20-day moving average. Below could put the 50-day moving average in play. But investors should definitely use some caution if the $135 to $140 area starts to give way.
On the date of publication, Bret Kenwell held a long position in AYX.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
