The bears were caught offside on Friday, betting that the Fed would say something to derail the rally. The opposite was true, as the S&P 500 surged to new all-time highs. That train continued without stopping on Monday. With all of that in mind, let’s look at a few top stock trades.
Top Stock Trades for Tomorrow No. 1: Affirm Holdings (AFRM)
Like many other growth stocks, Affirm Holdings exploded higher in the first quarter, but has been downright awful to own over the last six months. Gapping higher now, bulls are hoping that those days are long gone.
Struggling with the $100 mark now, I have my eye on this level as well as the 50% retracement at $96.70.
If AFRM stock loses the latter, the low from Monday at $91.28 is on the table. If Affirm drops below that mark, the 38.2% retracement is in play near $85, followed by the 10-day moving average.
On the upside, though, if AFRM stock can take out Monday’s high at $101, it opens the door to the 61.8% retracement near $108.50 — followed by a push higher. The hope is that the stock can climb from here and use $100 as support, but we shall see.
Top Stock Trades for Tomorrow No. 2: Facebook (FB)
I was eyeing Facebook (NASDAQ:FB) this morning, wondering how long it would take to hit new highs. The answer? Not long, as it happened today.
Now the question becomes, how far can it rally?
I am looking for a push into the $396 to $402 area…so call it $400. Does that mean it will get there? Not necessarily. But in that zone are two major extensions.
First, the stock finds the 161.8% extension from the current range. Second, it finds the 261.8% extension from the much larger range, which reaches back to the highs from 2020.
However, on a break back below the prior high (at $377.55), the stock may need to test its short-term moving averages in order to reset.
Top Stock Trades for Tomorrow No. 3: Zoom Video (ZM)
Zoom Video (NASDAQ:ZM) reported earnings after the close, and there hasn’t been much love for the stock despite a resurgence in novel coronavirus cases. Currently trading in that important $340 zone, Zoom is in the middle of two ranges.
At the high, shares recently double-topped near $400. However, it’s holding up over the recent $281 low and the $300 area it has so often bounced from. That said, it’s below all of its major daily moving averages, so it does have a bit of a bearish lean.
On the plus side, that gives us a pretty easy range to trade. On a bullish earnings reaction, let’s see if Zoom can clear its daily moving averages, which would require a move over $370. If it can do that, it opens the door to $400.
On the downside, though, let’s see if $300 is support.
Top Stock Trades for Tomorrow No. 4: Tesla (TSLA)
Tesla (NASDAQ:TSLA) had some pep in its step today as it continues to build a base over the $700 zone. As you can see on the chart, this area has been important.
It’s now testing into the $727 area, which has been a resistance. On a close over $730, it could open the door for a larger run to the upside. Specifically, we were watching the $781 level a few months ago due to the gap from February.
While the stock filled this gap in April, this level acted as resistance. So if Tesla does take off, the $781 area will be of interest once again.
If Tesla can’t clear $730, keep an eye on $700, along with the 10-day and 21-day moving averages. Below puts the 200-day in play.
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.