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)
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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)
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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)
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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)
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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.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
