Stocks moved higher in the first trading day of May, although the indices struggled to generate strong momentum on the day. That said, let’s see how the market handles this week’s earnings report.
Top Stock Trades for Tomorrow No. 1: Berkshire Hathaway (BRK-A,BRK-B)
That clarity is helping to give the stock a boost on Monday, up nearly 2% to new all-time highs.
Berkshire stock continues to trend higher and Monday’s boost helped send it over the 161.8% extension. From here, I want to see if it can continue higher, potentially to the $300 area and the two-times range extension.
But on a move back below the 161.8% extension, look for the 10-week and 50-day moving averages to act as support.
Top Stock Trades for Tomorrow No. 2: Pfizer (PFE)
Pfizer (NYSE:PFE) is giving investors a monthly-up rotation over $39.67, while also pushing through the 61.8% retracement. However, complicating the move is earnings, which the company will report on Tuesday before the open.
On a bullish reaction, let’s see if Pfizer can rally to the 78.6% retracement near $41. Above that, and it potentially puts the Q4 high in play near $43.
On the downside, a bearish reaction could undercut the 61.8% retracement, putting the 10-day moving average in immediate play.
However, a move below that mark could put the 21-day moving average and uptrend support (blue line) on the table.
Top Stock Trades for Tomorrow No. 3: Novavax (NVAX)
Novavax (NASDAQ:NVAX) is getting waxed on Monday, down almost 18% on the day. While the move appears devastating, it may actually be an opportunity.
The stock broke below a number of key moving averages on the day. However, it’s declining right into the 21-week moving average and uptrend support (blue line). These measures have been critical support for a while now.
If this area holds — and that’s a big “if” right now — then the 50-day and 10-week moving averages are the first upside target.
If this area doesn’t hold, there could be some air below current prices. Specifically, it could put the March lows in play in the $160s. Below that could put the $150 mark and the 200-day moving average on deck, followed by the $135 breakout level.
Keep in mind, this is a volatile mover and not one that fits every trader’s risk appetite.
Top Trades for Tomorrow No. 4: Amazon (AMZN)
Amazon (NASDAQ:AMZN) hit new all-time highs, but just barely. On top of that, we’ve seen a pretty undesirable reversal take hold.
Shares effectively failed at the prior high, then lost the $3,434 level. From here, I really want to see how it handles the $3,345 mark. That was prior range resistance that Amazon finally cleared last month. The hope was (and still is) that Amazon can find this prior resistance level as support.
It helps that the 21-day moving average comes into play near that level too.
Below all of these marks could put the $3,200 level in play, where the 200-day and 50-day moving averages currently reside.
On the upside, I’m looking for a move back above $3,434. That could open the door to $3,550-plus.
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.