Stocks began the week higher on optimism over the rollout of a Covid-19 vaccine. However, bulls had trouble maintaining those gains after the morning pop. That said, let’s look at a few top stock trades for Tuesday.
Top Stock Trades for Tomorrow No. 1: Alphabet (GOOG, GOOGL)
On Wednesday Dec. 9, Alphabet stock broke and closed below its 10-day moving average. In the following session, it gapped below the 21-day moving average. Now, it’s being met as resistance at these two points.
That said, this is where things get a little trickier. Should Alphabet have a daily-down rotation and take out Friday’s low near $1,753, then last week’s low near $1,733.50 is in play. That’s along with the key $1,717 area, which was the high from September.
That area has been acting as support since Alphabet gapped above it in November.
On the upside, however, a close back over the 10-day and 21-day moving averages puts a possible test of the highs in play.
Top Stock Trades for Tomorrow No. 2: Amazon (AMZN)
Unlike Alphabet, Amazon (NASDAQ:AMZN) has not been a leader over the past few months. That’s evident after a quick glance at its charts.
With that said, the stock continues to wind in a tighter and tighter range, as it makes a series of higher lows and lower highs. This wedge pattern (blue lines) will ultimately resolve in one direction or the other.
Shares are sitting at a key area now. The weekly-up rotation will take play on a move over $3,184.13. However, Amazon also has its 21-week moving average, 50-day moving average and 100-day moving average all near this area as well.
It’s safe to say that the $3,185 area is the line in the sand. Over it, and Amazon may go on a strong rally — potentially putting the November high in play at $3,366, followed by the $3,500 area.
If it fails to push through the $3,185 area, then wedge support and the December lows could be back in play near $3,073.
Top Stock Trades for Tomorrow No. 3: Wynn Resorts (WYNN)
Wynn Resorts (NASDAQ:WYNN) put together a nice rally over the past month, climbing from a low around $85 to a recent high near $115. However, shares have been stalling.
Wynn has been chopping between the June high near $109 and the recent highs near $115. Moving to the downside on Monday, bulls want to know if the 10-day moving average — which has been support over the past month — will continue to act as support now.
If it does, investors will want to see a retest of $115 resistance, with a possible breakout over that mark. In that scenario, it could put $125 in play, a gap-fill level from February.
If the 10-day moving average fails as support, the 21-day moving average is in play, with $95 on the table below that.
Top Trades for Tomorrow No. 4: Rocket Companies (RKT)
Rocket Companies (NYSE:RKT) has been gaining some momentum over the past few days.
After coming public in August, buyers bid this name up aggressively into its September highs — before watching it fade and struggle.
Most recently, shares bounced from the $19.50 area and after a few bumpy days, reclaimed its 10-day, 21-day and 50-day moving averages. Nice work, bulls.
The stock is now pushing higher, with the November high near $23 on the table. Above that, and the October high is in play near $24, followed by $27 above that.
On the downside, I want to see the $21 area hold as support, where RKT stock currently has a trifecta of moving average support. Below will put uptrend support in play (blue line).
On the date of publication, Bret Kenwell held a long position in GOOGL.