The S&P 500 and Nasdaq Compostie hit new all-time highs on Monday. It’s been a week since I’ve written the Top Stock Trades column. And when I left, we were hitting new highs as well. Has anything changed? Let’s take a closer look.
Top Stock Trades for Tomorrow No. 1: Pfizer (PFE)
What a day for Pfizer (NYSE:PFE). The company announced a $2.26 billion acquisition of Trillium Therapeutics (NASDAQ:TRIL), while its vaccine for Covid-19 received full approval from the U.S. Food and Drug Administration (FDA).
The move almost sent the stock to new 52-week highs, although it came up just short and is now retreating from those levels. However, shares are holding up near $50.
I want to see this level hold as support. Below it will put the 10-day moving average back in play. Below the 10-day moving average could put the 21-day in play, followed by the $45 to $46 area.
However, over $50 keeps the two-times range extension in play near $52.70. Above that, and perhaps longer term bulls can use the 261.8% extension as the next upside target, near $58.70.
Top Stock Trades for Tomorrow No. 2: Moderna (MRNA)
Moderna (NASDAQ:MRNA) is also moving nicely on the day. Shares are reclaiming the 10-day and 21-day moving averages with today’s rally, as the stock is up an impressive 7.6%.
Keep a close eye on the $413.50 area. Above that mark puts MRNA stock in a weekly-up situation.
That could kickstart a larger move to the upside. Specifically, I would have my eye on the 161.8% extension near $440. Above $450, and some traders will surely look for a push to $500-plus.
On the downside, though, a break of the 21-day moving average could put the $350 area back in play.
Top Stock Trades for Tomorrow No. 3: Nvidia (NVDA)
For those that have been following along, it’s not surprising that Nvidia (NASDAQ:NVDA) is at new all-time highs. Plowing its way higher now, we’ve seen a massive two-day push in the stock following solid earnings.
So, where to from here? After a nice consolidation phase where the 50-day moving average held as support, Nvidia is extending over the prior all-time high with a rather clean breakout.
Let’s see if it can get to the 161.8% extension, near $227. Above that, and the $250 to $255 zone could be next.
On the downside, however, watch the $208 level. Bulls need that mark to hold as support. Below that, and the 50-day moving average is on the table.
Top Trades for Tomorrow No. 4: Alibaba (BABA)
Man, Alibaba (NYSE:BABA) stock has been a total mess. After breaking below the 200-week moving average, this measure turned to resistance. However, are we near a bottom?
Shares made new lows today, but then reclaimed last week’s low at $155.50. We have some divergence on the Williams %R measure too (which started last week).
From here, keep it simple. On the upside, my targets are the 2020 lows near $170 and the 10-day moving average. Above that, and BABA stock could fill some of the gaps and hit the 21-day moving average.
On the downside, though, it needs to hold the current low, at $152.80. Below, and it’s a cut.
On the date of publication, Bret Kenwell held a long position in NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.