We got a slight relief rally on Tuesday, but it’s not instilling much confidence on Wall Street. We’ll have to wait at least another day to get a better idea on the market’s direction. Until then, let’s look at a few top stock trades.
Top Stock Trades for Tomorrow No. 1: Advanced Micro Devices (AMD)
Advanced Micro Devices (NASDAQ:AMD) is making a lot of headlines on the day. The company reported record revenue results ahead of its scheduled evening release, as it also announced a $35 billion deal to acquire Xilinx (NASDAQ:XLNX).
With this, shares are moving lower on the day, down a little more than 4%. With the decline, bulls will now see if AMD stock declines to the 100-day moving average and range support near $74. Look to see if support comes into play here.
If it fails, a gap-fill down toward $68 is possible. If the selling really picks up — say alongside a broader market decline — shares could fill the other gap down near $62 and tag the 200-day moving average in the process.
On the upside, AMD has to reclaim the 50-day moving average to test range resistance near $88.
Top Stock Trades for Tomorrow No. 2: Bitcoin
Bitcoin continues to trade really well. We have updated this one periodically over the last few months, as bulls continue to nibble it higher.
The $10,000 mark was key, as was prior downtrend resistance (blue line). Once shares broke out over the latter, bitcoin powered through the former. Then, even better, $10,000 was support this summer on the back test.
Bitcoin is now pushing through the 61.8% retracement, as measured from the 2018 lows to the 2017 peak. If bitcoin can clear its high from 2019, it technically puts the 78.6% retracement in play up near $16,125. Above that and the all-time high is possible.
As long as the 10-week moving average holds on the downside, it’s hard to get too bearish.
Top Stock Trades for Tomorrow No. 3: United Parcel Service (UPS)
United Parcel Service (NYSE:UPS) will report earnings on Wednesday morning and so far, this one has been a steady winner since its last major burst higher on earnings.
So far, the $165 area and 50-day moving average are acting as support. It seems like a lot to ask of these marks to hold once again with such a potentially volatile event in play.
If it holds, bulls remain in control and keep $177 resistance in play. Above that, and UPS could make a run toward $200 in the Q4.
Below $165, and the 50-day moving average could put $155 in play, which was the stock’s post-breakout support level. However, if it fails, prior $145 resistance and the 100-day moving average are up next.
Top Stock Trades for Tomorrow No. 4: Match Group (MTCH)
Match Group (NASDAQ:MTCH) continues to trade quite well.
When stocks took a tumble on Monday, MTCH stock barely flinched. When the pressure came off the market on Tuesday, Match popped, jumping 5.4% to new highs. That’s exactly the kind of action we like to see.
With Tuesday’s move it pushed through the August high and the 161.8% extension near $122. If it can continue higher, a longer term target can be drawn near $140, the two-times range extension.
Back below $120, and let’s see if the 50-day moving average and uptrend support can buoy the name.
Top Stock Trades for Tomorrow No. 5: NXP Semiconductor (NXPI)
NXP Semiconductor (NASDAQ:NXPI) reported earnings, and is down just slightly after doing so.
After breaking out to new 2020 highs earlier this month, it would have been bullish to see NXPI stock hold up above the prior highs near $137. Unfortunately, that wasn’t even the case before the print.
Instead, the stock is dipping, but the decline isn’t robust. Let’s see if the $130 area and the 50-day moving average can support NXPI. If it can and shares reclaim $137, look for a retest of the highs near $145.
If the 50-day gives way, see if the $120 area can support NXPI.
On the date of publication, Bret Kenwell held a long position in MTCH.