Friends, we’re in late-August trading. What more can we expect from the market? Volumes are low and the ranges are tight. The market is hovering near all-time highs with the Fed’s Jackson Hole meeting on tap. We’re getting some nice moves in individual stocks for our top stock trades, but try to keep some perspective in regards to the seasonality of the market. These are slow trading days as investors soak up the remainder of summer and take care of tasks ahead of the school year.
Top Stock Trades for Tomorrow No. 1: Carnival Cruise (CCL)
I was taking a closer look at Carnival Cruise (NYSE:CCL) as the stock continues trying to reclaim the 200-day moving average. After a nice pop up to $31.50, this stock hit stiff resistance and began to retreat.
The 50% retracement near $30 didn’t act as support after serving as prior resistance, leaving stubborn bulls holding the bag as this name retreated in a painful decline.
Amid that fall, CCL stock lost the 200-day moving average as support, which has since turned to resistance. Back near that mark now, CCL stock is also contending with the declining 50-day moving average, while the 38.2% retracement sits a bit higher, at $24.66.
Above $25, and this stock could muster up a move back toward $30.
However, if it can’t reclaim these key moving averages, uptrend support will be back in play. A failure to hold this measure could put the July low on the table, at $19.19. Below that, and the 23.6% retracement is back in play.
Top Stock Trades for Tomorrow No. 2: Palantir (PLTR)
Palantir (NYSE:PLTR) gave us a really nice move earlier this month, climbing more than 11% on better-than-expected earnings. Amid that move, the stock reclaimed both the 50-day and 200-day moving average.
It looked like the stock was setting a really strong tone, putting the June high at $27.50 in play, followed by a potential move to the gap-fill level north of $31.
Instead, though, each rally over $25 has been sold, as PLTR stock is struggling to maintain above its key moving averages. Case in point, it’s losing its 200-day moving average on Wednesday.
I really want to keep the $23.50 area on my radar. Near that mark, we have the 21-day and 50-day moving averages, as well as uptrend support (blue line). As long as this area holds as support, PLTR stock is okay. Below it, and it’s possible we see a dip back down to $21.
However, over this month’s high at $25.94, and the upside levels we just discussed could be on the table.
Top Stock Trades for Tomorrow No. 3: Micron (MU)
Micron (NASDAQ:MU) shares moved higher on the day, but struggled with a key area.
When we overlap the weekly measures with the daily chart, we can see that Micron stock did not react much to the 200-day moving average, but it was highly reactive to the 50-week moving average.
It was support in July and August, although the decline in August was only postponed by a day. Now, though, this measure is acting as resistance.
Overall, the stock has to reclaim this level in my opinion, and even then, it has an uphill battle. Those battles include the key $76.40 level, the 21-day moving average and the declining 50-day moving average, the last of which rejected the stock. Above those measures opens the door to $80-plus.
On the downside, though, a move below Wednesday’s low puts $69 to $70 back in play.
Top Trades for Tomorrow No. 4: Robinhood (HOOD)
Robinhood (NASDAQ:HOOD) is garnering some attention. After a meme-like rise, the stock slipped into a falling wedge pattern, which it broke out of on Tuesday.
Earlier in the day, I noted that Robinhood was giving us a very measured reaction on the day. It gave investors a chance to get long against the session low, as the 10-day moving average was holding as support.
Now, bulls are looking for a close above $50 and a push above the VWAP measure near $52. Above that could put the 50% retracement in play, at $63.72. Above that, and the 61.8% retracement could be on the table, near $69.
On the downside, however, a close below the 10-day moving average will likely force short-term bulls to stop-out.
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.