Monday was a quiet day for the indices, but a busy day in the markets. Well, and the Nasdaq hit new all-time highs. That said, let’s look at a few top stock trades as we kickoff the week.
Top Stock Trades for Tomorrow No. 1: Nio (NIO)
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Nio (NYSE:NIO) exploded higher on the day, jumping 10% at one point.
The move sent the stock toward the $50 level, just like what we were looking for. This was a prior support/resistance level.
If it can continue higher, keep in mind that the 61.8% retracement comes into play near $53. Above that, and perhaps Nio can fight its way up toward $60.
On the downside now, I want to see the 10-day and 21-day moving averages hold as support. Renewed strength in Nio and other leading electric vehicle (EV) stocks could help drive a bid across other high-growth tech stocks.
Top Stock Trades for Tomorrow No. 2: Facebook (FB)
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Facebook (NASDAQ:FB) burst higher on the day, surging to new all-time highs. The move also launched the stock over the 161.8% extension.
So, what now? Facebook has given us multiple attractive trading entries over the past few weeks. Even today, there was an opportunity as the stock went both daily-up and weekly-up over the prior day’s high and the prior week’s high, respectively.
Now north of $350, it’s much harder to be bullish as it relates to entering a fresh position. If it continues higher, let’s see if Facebook can get to the two-times range extension near $365.
On the downside, I am a buyer of pullbacks until the short-term moving averages fail to act as support.
Top Stock Trades for Tomorrow No. 3: Edward Lifesciences (EW)
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In several years of working on Top Stock Trades, I don’t know if I’ve ever posted Edward Lifesciences (NYSE:EW) in this column. Well, today is the day.
Shares broke out over $100 and held that level without any wavering, then burst to new highs and the 161.8% extension. Now we’re getting a nice controlled pullback to the 10-day moving average.
I like buying dips like this and looking for a push higher. In this case I’m looking for $105 to take some profit and then raising my stop to break-even. Below Monday’s low breaks the trade and could put the $100 level and 21-day moving average in play.
We always have to be prepared. That goes for when our plan works and when it fails. In trading, it’s a game of probabilities, not certainties. When we’re wrong, we have to admit it and move on.
Top Trades for Tomorrow No. 4: Texas Instruments (TXN)
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Texas Instruments (NASDAQ:TXN) is a name I found late last week, but wanted to see how it closed the week. Above is a weekly chart similar to the one I posted this morning before the open.
In late-morning trading, this stock gave us the move we were looking for by triggering a weekly-up rotation over $190.25. This comes after an inside-week, a bounce off the 21-week moving average and a reclaiming of the 10-day moving average.
From here, let’s see if TXN can push up into the $95 to $97 area. Above puts $100-plus in play.
These weekly setups can be a bit fickle sometimes, so let’s be careful that it doesn’t reverse lower on us.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
