It’s deja vu all over again. Stocks popped at the open on Monday morning in hopes for a vaccine. This time the good news came from Moderna (NASDAQ:MRNA). Now, let’s look at a few top stock trades, with earnings still in play.
Top Stock Trades for Tomorrow No. 1: Baidu (BIDU)
Baidu (NASDAQ:BIDU) has done a pretty good job recovering from its March losses. However, the stock could get volatile as it reports on Monday after the close.
Shares are running into potential resistance, an area that’s shown on the chart via a blue box. This zone was support in late 2018 and resistance in early 2020.
I’m looking for Baidu to either fade from this level or break out over it.
If it’s a fade, look for support to come into play near $135, where Baidu will find the 10-week moving average and uptrend support (blue line). If it’s a breakout, let’s see if BIDU can get to the 200-week moving average near $172.50. Above that and $180-plus could be in play.
Top Stock Trades for Tomorrow No. 2: Palo Alto Networks (PANW)
Palo Alto Networks (NYSE:PANW) is moving well on Monday, up 7.7% to new all-time highs. The move comes after the company beat on earnings and revenue expectations before the open.
Earlier this month, the stock broke out over downtrend resistance (blue line) and was moving well ahead of earnings. Now, I want to see if the stock can maintain over its prior highs near $275.
For now, that is our line in the sand to watch.
Above it could put the 138.2% extension in play near $299. Above $300, and the 161.8% extension can be used as a longer-term price target, near $329.
On the downside, though, a move below Monday’s low puts a gap-fill in play near $260.
Top Stock Trades for Tomorrow No. 3: Tyson Foods (TSN)
Like Palo Alto, Tyson Foods (NYSE:TSN) is rallying on earnings, up about 4% on Monday.
The action here is positive, but Tyson isn’t out of the woods just yet. While shares are moving nicely over all of its major moving averages and are finally above the 200-day, range resistance at $66 is still in play.
That was resistance from August and September. Above it puts $68 in play, the high from June and the 50% retracement for this year’s range. Above that, and the 61.8% retracement is possible near $73.60.
On the downside, however, I need to see the $60 to $61.50 area hold as support, where TSN will find the 50-day, 100-day and 200-day moving averages.
Top Trades for Tomorrow No. 4: Blink Charging (BLNK)
Blink Charging (NASDAQ:BLNK) has been trading in a multi-month wedge, highlighted by a higher lows and lower highs (blue lines on the chart).
With Monday’s spike, Blink stock took out this month’s high, as well as the October high. I would like to see the stock hold up over the $11.50 area now. That’s the September and October high, roughly. The more time it spends above this mark, the more likely it is that it will retest the July high near $14.60.
On the downside, let’s see if the backside of wedge resistance acts as support. If not, it will put the 50-day and 100-day moving averages in play, as well as wedge support.
Top Trades for Tomorrow No. 5: Wingstop (WING)
In October, the stock traded down to the 50-week moving average, where it promptly reversed higher and closed at $134.37. The next week (last week) shares closed at $133.44.
If Wingstop can rotate over this range — $133.44 — we will get a two-times weekly-up rotation. In the process, the stock will also reclaim the 10-week moving average.
If shares can gain momentum over this mark, it will put the 20-week moving average in play near $140, followed by last month’s high at $145. Traders may consider using this week’s low as their risk pivot ($127.62).
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in any of the securities mentioned in this article.