The S&P 500 hit another new all-time high on Tuesday, although the action is getting slower and slower on the upside. With that in mind, let’s look at a few top stock trades for Wednesday.
Top Stock Trades for Tomorrow No. 1: AMC Entertainment (AMC)
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Apparently it’s #AMCDay, although that doesn’t seem to be helping AMC Entertainment (NYSE:AMC), which finished the day down more than 7%.
Last week, AMC stock gapped down to the 10-week moving average and ripped back toward $50. However, $50 has proven to be resistance and the stock has been treated to three straight daily declines as it nears last week’s low.
The stock is now below the 10-week moving average. If AMC stock closes below this measure and last week’s low of $38.76, it puts the 50-day moving average in play. Personally, I’d like to see AMC stock fill the gap down near $33.50.
If we get a rebound back over the 10-week moving average, let’s see if AMC stock can hurdle the 10-day moving average. Back above that measure puts $50 back on the table.
Top Stock Trades for Tomorrow No. 2: Boeing (BA)
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Boeing (NYSE:BA) keeps trying to gain momentum, but it just can’t push through its major moving averages.
Specifically, the 10-day, 10-week, 21-day and 50-day moving averages keep acting as resistance. Until it can clear the $240 zone — and thus, these moving averages — bulls are fighting an uphill battle. The flip side of that coin is buying on a deeper correction.
Boeing stock is coming into last week’s low near $226. A close below that likely sets up a test of the $220 area and the 200-day moving average. I would expect this measure to provide a bounce, but if it instead overshoots this level, the 50-week moving average could be in play.
For what it’s worth, a move above $242 could put $255 in play.
Top Stock Trades for Tomorrow No. 3: Goldman Sachs (GS)
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The banks kicked off earnings season on Tuesday, with JPMorgan (NYSE:JPM) and Goldman Sachs (NYSE:GS) both reporting before the open.
Goldman reported a strong quarter, but the stock hasn’t made up its mind on which direction to go. The initial rally was sold, but the 10-day moving average was support. Now bouncing, shares are treading water near downtrend resistance.
I’m watching this week’s high. A move over $385 could ignite a rally back to the 52-week high near $393. Above that, and $400-plus is on the table.
On the downside, keep an eye on the post-earnings low near $372. Below that, and the 50-day moving average could put the gap-fill in play near $363, as well as uptrend support (blue line) and the 21-week moving average.
Top Trades for Tomorrow No. 4: PepsiCo (PEP)
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Like Goldman Sachs and JPMorgan, PepsiCo (NASDAQ:PEP) reported earnings before the open. However, unlike the others, PepsiCo is hitting new all-time highs.
From here, it’s a little tricky to navigate.
Clearly the prior high near $149 was acting as resistance, although this measure turned to support ahead of earnings. I want to see that continue going forward.
If PepsiCo can continue to trend higher — remaining above the $147 to $149 area and the 21-day and 50-day moving averages, then it’s possible we see a push up to the 161.8% extension of the 2021 range, near $161.50.
Above that, and perhaps we see the 161.8% extension of the 2020 range up near $175. I hope the extensions are not confusing. While not an exact science, these measures can be helpful when seeking out upside targets, particularly on stocks like PepsiCo which are hitting new highs.
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.
