After some shaky days in the market last week that made traders question the market’s short-term direction, we experienced a strong move to the upside on Tuesday. That said, let’s look at a few top stock trades as we enter earnings season.
Top Stock Trades for Tomorrow No. 1: Morgan Stanley (MS)
The big banks are reporting and the numbers are pretty solid. Given how well Goldman Sachs (NYSE:GS) did, I am optimistic on Morgan Stanley (NYSE:MS). However, even though Goldman did well, the stock dipped a bit on the results.
Will Morgan Stanley as well?
Shares have already rallied to the 161.8% extension ahead of the print. With that said, the recent dip to the 10-day moving average held as support. That leaves last week’s range and a keep-it-simple approach.
Over last week’s high at $77.17 (which is also the 52-week high) and perhaps MS can begin to make its way to the two-times range extension. Below last week’s low at $73.67 and the 10-day moving average, could put the 21-day moving average and potentially the gap-fill near $70 in play.
Top Stock Trades for Tomorrow No. 2: Halliburton (HAL)
Halliburton (NYSE:HAL) is dipping slightly on earnings, but the stock isn’t falling apart.
Like Morgan Stanley, we’re going to keep an eye on the weekly ranges, while using the daily moving averages as a guide.
Should Halliburton lose the 21-day moving average, last week’s low near $19.25 is on watch. Below that, and the $18.25 area and 50-day moving average may be due for a test.
However, if shares can reclaim the 10-day moving average and 78.6% retracement, the recent high near $22.25 is in play. Above that, and perhaps HAL can challenge the pre-coronavirus 2020 highs near $25.50.
Top Stock Trades for Tomorrow No. 3: Procter & Gamble (PG)
Procter & Gamble (NYSE:PG) is due to report earnings on Wednesday before the open. Going into the report, shares are certainly lacking momentum.
I’m not a big head-and-shoulders guy, but P&G has every look of one as it breaks the neckline (at $134.65) ahead of earnings. Now the tricky part is, will earnings confirm the breakdown or reverse it?
If the selling accelerates, let’s see how PG stock does with the $128 to $130 area. That’s the 200-day moving average and prior highs from a year ago.
On the upside, though, we need to see shares reclaim $134.65, then test up into the 21-day and 50-day moving averages. Back above the latter and this month’s high is in play near $141. Above that, and perhaps $145 is on the table.
Top Stock Trades for Tomorrow No. 4: Clovis Oncology (CLVS)
Clovis Oncology (NASDAQ:CLVS) has been trading better lately, particularly after last week’s breakout over downtrend resistance.
Shares consolidated for several days before charging higher again. With Tuesday’s rally, CLVS stock is reclaiming the 200-day moving average. Above this level and the key $6.40 mark, could open the door to $7.70.
Above the $7.70 level, and CLVS could eventually move up toward the 38.2% retracement and fill that gap near $9.
If the 200-day moving average and/or $6.40 level acts as resistance, see that $5.58 holds as support.
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.