The S&P 500 hit another new all-time high on Tuesday, although the Nasdaq Composite slipped in the session. That said, let’s look at a few top stock trades as we approach mid-week.
Top Stock Trades for Tomorrow No. 1: Advanced Micro Devices (AMD)
Now pulling back, this one is finding support right where it needed to: The 10-day moving average.
On the breakout, look at that explosive move in the volume as hedge fund managers, traders and investors were all piling in and out of this name. A dip down to support with so much volume offers a reasonable risk/reward long position here.
A break of Tuesday’s low ruins that setup and could put the $100 area and 21-day moving average on the table.
From here, though, I’m looking for a rotation above Tuesday’s high putting the $115 area back in play, followed by a push toward the current highs near $122.50.
Top Stock Trades for Tomorrow No. 2: Digital Turbine (APPS)
One of investors’ favorite trading vehicles has been Digital Turbine (NASDAQ:APPS). However, shares did not trade well after earnings, down about 7% on the day.
Worse, shares are breaking below the 200-day and 21-day moving averages with Tuesday’s decline. There’s one saving grace left though, and that’s the 50-week moving average.
APPS stock is a great example of why traders should consider using multi-timeframe analysis. Whether it’s the 1-hour and 4-hour charts or the daily and weekly or the weekly and the monthly. Knowing multiple levels of relevance is always a positive, in my view.
In this case, notice the stock’s tendency to break the 200-day but respect the 50-week moving average. If that tendency fails this time around, the July low at $57.56 could be in play. Below that could put $53 on the table.
On the upside, however, we need to see the stock reclaim its 200-day, then 50-day moving average. Above $70 and downtrend resistance (blue line) could be on the table. But let’s not get ahead of ourselves — let’s see how APPS does with the 50-week.
Top Stock Trades for Tomorrow No. 3: Fisker (FSR)
Fisker (NYSE:FSR) had a nice trading day, up more than 21% on Tuesday — and that’s even as the stock is well off the highs!
I’ll tell you, Fisker stock needed this move. The gap-up rally allowed shares to burst over a plethora of significant moving averages. That will now give these measures a chance to act as support instead of resistance and could put the ball back in the bulls’ court.
On the upside, bulls need to keep an eye on the $20 level. That’s provided that the stock can clear Tuesday’s high. If it can do that, $23 to $25 could be in play.
On the flip side, though, watch Tuesday’s low. Below that puts the 50-day moving average in play. Below that, and that cluster of moving averages is on the table. Keep it simple and go from level to level.
Top Trades for Tomorrow No. 4: Micron (MU)
Micron (NASDAQ:MU) is in the midst of a nasty little decline, shedding more than 5% on Tuesday, following Monday’s 2.2% decline.
With today’s decline, Micron is breaking below the 21-day, 50-day and 200-day moving averages. I’m not going to lie, that’s pretty decisive action and while the $76 area could buoy Micron, I wouldn’t bet my life savings on it happening.
Not that it can’t hold, it’s just that Micron sliced through what should have been more meaningful support. Why should this area hold now? If it does, look for a reclaim of $80, which puts the 21-week moving average and downtrend resistance in play.
If $76 fails as support, keep an eye on the 50-week moving average. Like APPS stock, this has been the more significant moving average as of late. Below that measure and the $72.50 to $73 area becomes critically important.
On the date of publication, Bret Kenwell held a long position in AMD. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.