The S&P 500 continues to grind higher, hitting another new all-time high on the move. That said, let’s look at a few top stock trades as we start the new trading week.
Top Stock Trades for Tomorrow No. 1: Nvidia (NVDA)
Click to Enlarge
Nvidia (NASDAQ:NVDA) has been consolidating for eight months now. Is it finally time to rally? It may be, as the company continues to pummel the headlines with positive news from its GTC conference.
Shares are bursting through $590 resistance and quickly approaching the highs near $615. From here, I want to see a breakout over this area, putting the 161.8% extension from the September range in play up near $660. Above that could technically open the door to $700-plus.
Because the stock is up big on Monday and in the last four days — as well as in seven of the last eight sessions — we have to be aware of the downside too. In this case, Nvidia needs to hold $590 in order to keep bulls’ confidence high.
And can we just take a minute to appreciate how darn well that 50-week moving average held as support? Remember to use different timeframes when evaluating a stock (daily, weekly, monthly, etc.).
Top Stock Trades for Tomorrow No. 2: Intel (INTC)
Click to Enlarge
Ironically, the positive comments from Nvidia’s GTC conference that are giving the stock a boost are also the same comments that are hurting Intel (NASDAQ:INTC).
Intel was fresh off new 52-week highs, but are down more than 4% on the day. The stock is now sitting right at last week’s low.
If it loses this mark — at $64.70 — look for a possible test of the 10-week and 50-day moving averages. The 10-week has been strong support over the last few months as INTC has powered higher.
I would expect this zone to give the stock a bounce, provided it falls that far. If it fails to, $60 and the 21-week moving average may be in play.
Top Stock Trades for Tomorrow No. 3: Uber (UBER)
Click to Enlarge
Some good booking data from Uber (NYSE:UBER) has the stock looking to breakout — although bulls seem hesitant to bid it higher.
The stock is pushing through downtrend resistance (blue line), but struggling with resistance around $60. That zone has plagued the stock all year. If Uber can push through it, look for a test of the 52-week high up at $64.05. Above that opens the door to $70 and the two-times range extension.
On the downside, though, a move back below Monday’s low puts a gap-fill in play down toward $58.
And if Uber closes below the 50-day moving average, it could retest uptrend support.
Top Trades for Tomorrow No. 4: DraftKings (DKNG)
Click to Enlarge
What’s going on with DraftKings (NASDAQ:DKNG) now? The stock was a relative strength leader amid the growth-stock pullback, but now it’s struggling too.
Shares are pulling back into the key $56.75 area, as well as the 100-day and 21-week moving averages. While this area had a few “bend but didn’t break” moments (shown with purple arrows), it has ultimately held as support.
Having the extra moving averages there only helps bulls make their case. If it breaks, the $53 to $55 area could come into play quickly (even just for intraday action), but presently, the setup has a favorable risk/reward setup for buyers.
The one caution I would have is the head-and-shoulders look. I’m not a big head-and-shoulders pattern trader, and I don’t really care for the setup because I don’t find it that accurate (or maybe I’m just not good at it).
Either way, shares are at the “neckline” here, with the head and shoulders highlighted in blue. Keep an eye on it.
On the date of publication, Bret Kenwell held a long position in NVDA and DKNG.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
