Last Monday, we had a gnarly dip that spilled over from Friday’s session. However, the market spent the rest of the week rallying. Now this Tuesday, tech is seeing some selling pressure ahead of earnings and as Chinese equities remain under pressure. With all of that in mind, let’s look at this group for our top stock trades.
Top Stock Trades for Tomorrow No. 1: Alphabet (GOOG, GOOGL)
GOOGL has been one of the best-performing FAANG components, recently hitting new all-time highs. I’m no bear, but it would be healthy to see Alphabet dip a bit after the print.
If it’s a shallow decline, look to the 21-day moving average and daily VWAP measure as the first level of support. Below that puts the $2,460 breakout level on watch, along with the 50-day moving average.
On the upside, though, keep an eye on the $2,744 area — the 361.8% extension. Above that could open the door toward $3,000.
Top Stock Trades for Tomorrow No. 2: Nio (NIO)
After struggling with that $53 to $54 area, shares are coming down hard. The stock is now struggling to hold $40 and the 50-week moving average. Personally, I’d like to see how it handles the weekly VWAP measure.
That mark has been support, and I would expect it to be until proven otherwise. Below that puts the $30 to $31 area on the table.
On the upside, however, we need to see a bounce send Nio stock back above the 50-day moving average. Then we can start talking about a larger rotation possibility.
Top Stock Trades for Tomorrow No. 3: Alibaba (BABA)
The selling pressure has been relentless in Alibaba (NYSE:BABA). The stock bounced nicely from the 200-week moving average a few weeks ago, but it couldn’t reclaim the $210 to $215 area.
That prior support zone has clearly shifted to resistance, and that’s being followed with a gap-down this week. The selling pressure started on Monday and has continued on Tuesday.
Now breaking below the 200-week and 50-month moving averages, there’s a real possibility that Alibaba’s March 2020 lows are on the table, near $170. If we break that and reclaim it, Alibaba may be a great dip-buying opportunity, but we need to be careful with this one right now.
On the upside, though, see how the stock does on rallies back to the 200-week moving average. A rejection would be quite bearish. Reclaiming it would be more bullish, but make no mistake, there are a lot of hurdles remaining.
Top Trades for Tomorrow No. 4: Marathon Digital Holdings (MARA)
Last but not least is Marathon Digital Holdings (NASDAQ:MARA). I touched on Bitcoin (CCC:BTC-USD) yesterday, along with some of the other Bitcoin-related equity plays. I want to throw MARA stock on that list, too.
With Tuesday’s dip, we’re seeing MARA hold the 50-day moving average. If it fails, the $25.35 gap-fill level is on the table. Below that, and the 200-day moving average could be in play — along with uptrend support.
On the upside, however, look for a push through $30. Above it and the 21-week moving average is in play. Above that, and MARA can really get moving. Keep in mind, though, it will need Bitcoin to lead the charge.
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.