Tech gave us a strong rebound on Wednesday and the S&P 500 hit new all-time highs as we wrapped up the first quarter on Wednesday. That said, let’s look at a few top stock trades.
Top Stock Trades for Tomorrow No. 1: Microsoft (MSFT)
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Microsoft (NASDAQ:MSFT) jumped higher on the day on news of a new contract with the U.S. Army. However, it’s still trapped below the $240 mark.
That has been resistance since the stock gapped down from that area last month. For now, it’s a messy trade, as shares contend with multiple moving averages. On the plus side, it is putting in a series of higher lows.
Here’s what we need to see.
Microsoft needs to clear $240 and close above this level. That puts the highs in play near $246, followed by the two-times range extension near $249, then the 161.8% extension of the shorter timeframe near $255.
On the downside, however, a break of uptrend support (blue line) puts the 100-day moving average and $225 level on the table.
Top Stock Trades for Tomorrow No. 2: Arrival (ARVL)
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The special purpose acquisition company (SPAC) trade is finally unraveling a bit and Arrival (NASDAQ:ARVL) isn’t being spared in the selloff.
Shares actually topped out in December and have quietly been putting in a series of lower highs for months now. Wednesday’s action is not promising, unless we get a reversal.
The stock knifed below the 200-day moving average, yesterday’s low and the monthly low. That’s not good.
Perhaps it’s got a date with that gap-fill mark down at $13.70. Otherwise, bulls need to see this stock reverse back up over the 200-day and reclaim $17.50. Above that, and $20 is possible.
Top Stock Trades for Tomorrow No. 3: Marathon Digital Holdings (MARA)
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Marathon Digital Holdings (NASDAQ:MARA) is moving well, as cryptocurrencies also find some upside momentum. With a powerful five-day rally off the recent low, the stock now finds itself at new highs.
However, shares are stalling near the February high and around $50. On a dip, I want to see shares hold the $43 to $45 area. That was resistance earlier this month.
On the upside, though, I’d love to see a push over $50 — a clean breakout that signals that the stock is going higher. Keep in mind, this will be tied to Bitcoin (CCC:BTC-USD). If it does well, so too should Marathon. But if Bitcoin stumbles, MARA stock will too.
Below the 10-day and 21-day moving averages, and MARA stock can retest the $28 to $30 zone.
Top Trades for Tomorrow No. 4: Cleveland-Cliffs (CLF)
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Cleveland-Cliffs (NYSE:CLF) is making a beautiful move here. With Wednesday’s surge, we have a powerful breakout in the making.
Shares cleared downtrend resistance (blue line), as well as the prior 2021 high at $18.77. CLF stock is now making its way over $20 as we speak.
It feels like a stretch, but if this one can maintain momentum, keep an eye on that 161.8% extension up near $22.50. That’s possible should these stocks keep chugging higher on infrastructure hopes.
On the downside, however, a move back below $18.75 could trigger a gap-fill and a retest of prior downtrend resistance.
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.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
