It was a slow but steady up-day in the stock market, with the S&P 500 and Dow Jones Industrial Average hitting new all-time highs. That said, let’s look at a few top stock trades as we enter the last trading session of the week.
Top Stock Trades for Tomorrow No. 1: Tesla (TSLA)
When was the last time Tesla (NASDAQ:TSLA) traded in this tight of a range? Shares continue to hold up over the $700 area we’ve highlighted, while the 10-day moving average is also coming into play as support.
From here, though, we need some more decisive action. Eventually, it will come. We either need a rotation over $727 or a drop below $697.
If it’s the latter, see if the 21-day moving average supports the stock. Otherwise, the 50-day and 200-day moving averages are in play. If we get a rotation over $727, the $781 level is on the table, which is the prior gap-fill area and the April high.
Aggressive bulls can be long against $695 or so and look for a push into the $720s. More conservative traders will wait for one of these two rotations to play out before taking a position.
Top Stock Trades for Tomorrow No. 2: eBay (EBAY)
eBay (NASDAQ:EBAY) started to move lower on earnings, but churned out some gains on the day — up about 1.3%.
Amid today’s push higher, shares are reclaiming the 10-day and 50-day moving averages. If eBay clears the 21-day moving average, look for a push above $70. Above $70 puts the $73 gap-fill level on the table.
On the downside, however, a fade back below the 50-day moving average leaves Thursday’s low vulnerable. Below that level (at $66.36), the key $65 level is on the table. If shares close below $65, then the 200-day moving average could be in play.
Top Stock Trades for Tomorrow No. 3: Clover (CLOV)
Clover (NASDAQ:CLOV) is also moving on earnings, but it’s jumped up a much more robust 10.8% on the day. That’s a far cry from where it was trading, though, as shares were up as much as 18.7% on the day.
That fade is only disappointing because the stock has had trouble clearing the $9.25 to $9.50 area multiple times in the past few months. So what do we want to see?
At the very least, I would love to see Clover close over this month’s high, at $9.23. However, a monthly-up rotation would be even more attractive, with a close over $9.45. If we get that, the 200-day and 50-day moving averages could be in play, followed by the $11.25 level.
On the downside, though, a move below the 10-day moving average puts critical support in play, at $7.90.
Top Trades for Tomorrow No. 4: Nio (NIO)
If we talk about one leading EV stock, we need to talk about the other — especially when it reports earnings. Nio (NYSE:NIO) isn’t plunging on its results, but it didn’t exactly trade well. Shares fell about 3.4% on the day.
While that’s not a big loss for a stock like Nio, it was a rather decisive move. What I mean by that is, Nio was chopping around its 21-day, 50-day and 200-day moving averages.
Had the stock broken higher by a few percent, it would be clearing all of these measures, allowing them to set up as potential support down the road. In turn, they’re going to act as potential resistance now that Nio is breaking lower from this spot.
On the downside, keep an eye on Thursday’s low and the 50-week moving average. A break of this area could put the July low in play at $38.66. Below that, and the mid- to low-$30s are on the table.
On the upside, however, Nio needs to reclaim its 50-day and 200-day moving averages. It’s that simple.
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.