Another quiet day saw stocks eke out new all-time highs despite muted breadth and low volumes. Hey, it’s the summer, and we’re just a few days away from a holiday weekend — what else can we expect? That said, let’s look at a few top stock trades.
Top Stock Trades for Tomorrow No. 1: Micron (MU)
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Micron (NASDAQ:MU) will soon report earnings, and investors are wondering if it will be enough to give the stock a jolt.
Here is a weekly chart where one can see that MU stock is being squeezed lower by its 10-day moving average. While Micron tried to make a push above this measure this week, it’s struggling to reclaim it.
It hardly matters. Earnings will likely be the driver as to whether it fails at or clears the 10-week.
Above the 10-week, and the 21-week moving average is in play, followed by the $88 to $90 area. Above $90 and the 52-week high is on the table near $97.
On the downside, however, I want to see $76 continue to hold as support, as well as the 10-month moving average. If they fail, the 50-week moving average will be in play.
Top Stock Trades for Tomorrow No. 2: Moderna (MRNA)
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Moderna (NASDAQ:MRNA) continues to be a reliable yet somewhat sloppy trading vehicle. What does that mean? Well, it respects the technicals and continues to follow patterns, but it often overshoots the mark. Meaning, if support is in play at $100 it may go down to $97 before recovering.
Or instead of retesting that major breakout level near $189, it bottoms at $193 and rips back over $200 before we get a chance to get long.
On Tuesday, the stock broke out over the prior high near $227. From here, let’s see if it can rally up to the 161.8% extension of the current range, near $250.
On a pullback, I really want to see the $220 to $225 area act as support, along with the 10-day moving average. Below puts the 21-day moving average back in play, which was support earlier this month.
Top Stock Trades for Tomorrow No. 3: Bed Bath & Beyond (BBBY)
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Like Micron, Bed Bath & Beyond (NASDAQ:BBBY) will report earnings on Wednesday. And thanks to the meme treatment, this one has been all over the place.
Shares erupted higher in early June, topping out at $44.51. It has since pulled back, as it bounces around $30.
On the upside, I want to see a post-earnings rally take BBBY stock north of last week’s high at $32.15. On the downside, I want to see the 50-day moving average hold as support.
Above $32.15 opens up $35-plus, potentially putting $40 on the table. Below the 50-day moving average and the 10-month and 200-day moving averages are in play.
Top Trades for Tomorrow No. 4: Starbucks (SBUX)
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I was looking through some weekly charts over the weekend and Starbucks (NASDAQ:SBUX) popped on my radar. Let’s break this one down.
Starbucks has two straight weeks with a high of $113.22. Both weeks saw the stock temporarily break the 21-week moving average, but hold it as support. Last week, SBUX stock put in a higher low vs. last week and reclaimed the 10-week moving average.
Now, the 10-week is acting as support as Monday’s dip is being bought.
I would love to see a rotation over $113.22, giving us a two-times weekly-up rotation.
If we get that, last month’s high is in play at $116.74, followed by the all-time high near $119. Above that and the 161.8% extension is possible near $121.50.
It’s worth noting that Starbucks is working on an inside month with just a day left to go in June. An inside-and-up monthly rotation could give the setup a little extra juice if bulls buy in.
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.
