We saw the S&P 500 make a new all-time high again on Thursday, as the index continues to grind its way higher. That’s now six-straight days of gains and six straight record-high closes. The index is up in eight of the last nine trading sessions as well. So as we kickoff the second half of the year, let’s get to it with our top stock trades.
Top Stock Trades for Tomorrow No. 1: Square (SQ)
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Square (NYSE:SQ) is a favorite among growth-stock investors, but shares aren’t back to the highs quite yet. In fact, we have a nimble setup with this one.
Measuring the 2021 range, we have Square struggling with the 61.8% retracement near $248. On Thursday, the stock gave us a slight dip to work with down to the 10-day moving average.
Square temporarily broke below this measure, but is doing a good job holding it into the close. I will be watching this one on Friday to see if it gives bulls a daily-up rotation over $245. Above that, and the $248 to $250 zone is in play, followed by a push higher.
On the downside, a break of Thursday’s low puts the 21-day moving average in play. That’s alongside the 10-week and 50-day moving averages as well and would likely be a decent dip-buying opportunity.
In other words, either more weakness to stronger support or a rotation higher is needed.
Top Stock Trades for Tomorrow No. 2: Regeneron (REGN)
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Regeneron (NASDAQ:REGN) has been looking much better lately, as shares cruise to new 2021 highs.
Now coming in on the 61.8% retracement, will there be some hesitancy? It’s possible, although REGN stock has been awfully strong lately. If not, $600-plus is certainly within play if the stock can clear this retracement measure.
For what it’s worth, the 78.6% retracement comes into play up at $617.
On the downside, I want to see the $550 to $555 area hold as support, along with the 10-day moving average. Below could put some of the more significant moving averages in play as support, like the 50-week.
Top Stock Trades for Tomorrow No. 3: Walgreens (WBA)
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Walgreens Boots Alliance (NASDAQ:WBA) shares are moving lower after reporting earnings, down more than 7% in the session.
The $55 to $56 zone ended up holding as stout resistance, while the $51 level ended up giving away as support. That’s okay. At least we have clarity. From here, I would love to see further selling pressure.
Specifically, let’s see if WBA stock can give us a dip down to the $45 to $46 area, where it finds not only prior support but also the 50-week and 200-day moving averages.
Top Trades for Tomorrow No. 4: CrowdStrike (CRWD)
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Last but not least is CrowdStrike (NASDAQ:CRWD). This stock gave us a quick trade off the open, but it eventually fizzled out as bulls lacked the strength to carry it meaningfully higher.
Still, it was a nice trade.
The stock broke out over the prior high at $251.28, then held that level as support, trading in a tight range afterwards. Like Square, it’s giving us a nice doji candle on the 10-day moving average.
I would love to see a daily-up rotation now over Thursday’s high of $254. That immediately sparks some momentum and puts the potential for a rally up to $260 in play. Above $260, and perhaps bulls can turn their attention to some of the larger extension targets.
On the downside, a break of Thursday’s low puts the 21-day moving average in play, then the $227 level and 10-week moving average.
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.
