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)
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)
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)
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)
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.