After a solid close but a tough trading session on Tuesday, stocks looked for a rebound on Wednesday. Unfortunately, it was a meager rally. Let’s see if the stock market can gain traction into the end of the week. Until then, let’s look at a few top stock trades.
Top Stock Trades for Tomorrow No. 1: Peloton (PTON)
Peloton (NASDAQ:PTON) shares are getting buried on Wednesday, down on a big product recall. Complicating things is the company’s earnings report later this week.
The stock is breaking down to its lowest levels since September. Around $80 was pretty strong support that month. Obviously earnings are going to play a big role in whether Peloton closes the week above or below this mark.
At this point, a rebound to $100 doesn’t seem likely. However, if it can get back to the $95 to $100 area, see if price accepts the stock back into this area or rejects it.
While we obviously didn’t know this type of action was coming today, look at the way PTON stock broke below key uptrend support and the 200-day moving average. That should have kept bullish traders out of the stock.
Below $80, and we’ll have to see if $75 can act as support.
Top Stock Trades for Tomorrow No. 2: Lyft (LYFT)
Lyft (NASDAQ:LYFT) is giving us a gnarly bearish engulfing candle, while breaking below last month’s low and the 100-day moving average.
On the upside, I need to see Lyft reclaim $54.50 to regain upside traction. From there, its 10-day moving average is in play, followed by a potential test of the $58 area.
On the downside, however, I am looking at the $50 area. That was a big breakout level from February. Below that, and the 10-month moving average could be in play.
Top Stock Trades for Tomorrow No. 3: PayPal (PYPL)
PayPal (NASDAQ:PYPL) is due to report earnings after the close and the stock, like many growth names, has been struggling.
Shares are breaking down below the $255 level, as well as a number of key moving averages.
On a break to the downside, it wouldn’t be weird to eventually see this name fall toward the $225 to $230 area. Not only is the 200-day moving average near this zone, but it’s been prior support as well.
Below could put the $210 to $212 area on the table.
On the upside, though, look for a move over $255 to put the 21-day moving average in play. Above the latter, and $275 may be on the table.
Top Trades for Tomorrow No. 4: Match Group (MTCH)
Match Group (NASDAQ:MTCH) is up on earnings, but has given up a lot of its post-earnings gains.
To get really interested in this stock, we need to see it get above the key moving averages that rejected it on Wednesday. Over the post-earnings high of $152.84 puts the $160 area in play.
On the downside, however, a break of this week’s low puts the 200-day moving average and $130 zone in play as a potential dip-buying opportunity.
Top Trades for Tomorrow No. 5: Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) caught my eye here on Wednesday.
Shares traded well off the open, outpacing both its industry and the overall market. However, it was rejected by a prior range level we’ve been watching: $589.
This area is acting as resistance. Should Nvidia reclaim this mark and the 10-day moving average, then a move over $600 and the 21-day moving average is possible.
If it can’t and $589 remains resistance, see how NVDA stock does around the 10-week moving average. Below it could put this week’s low and the 50-day moving average on the table.
On the date of publication, Bret Kenwell held a long position in NVDA.