On Tuesday, the S&P 500 fell for the sixth time in seven sessions while the Nasdaq notched its fifth decline in a row. On Wednesday, though, both indices finished in the green. That being said, let’s look at a few top stock trades as we have a lull in earnings.
Top Stock Trades for Tomorrow No. 1: Tesla (TSLA)
Tesla (NASDAQ:TSLA) is on almost every stock trader’s radar almost every day. It’s too big of a growth name to ignore and whether you like Tesla or not, its $757 billion market capitalization is hard to ignore.
The stock had been riding its 10-day moving average higher, generally giving bulls a gentle dip after a decent rally. Surprisingly, Tesla finished in the green on Monday, but not before dropping over 4% from the open and bouncing off the 21-day moving average and a prior resistance zone near $700.
Now back over the 10-day and trying to extend its gains, bulls need to see Tesla clear the $760 area. If it can do that, it quickly puts the $781 level in play, then $800-plus.
However, a move below $735 puts the downside levels back in play. That includes $727, the 21-day moving average, this week’s low near $709, then $700.
Top Stock Trades for Tomorrow No. 2: AMC Entertainment (AMC)
Shares were looking pretty good as the stock rode the 10-day moving average higher and pushed through the key $48 level. However, AMC stock couldn’t sustain momentum over $50, and its pullback on Tuesday should have been met with support.
That’s as it dipped back to the 10-day moving average and the $48 breakout level. That’s not what happened, though, with shares gapping lower on Wednesday. Luckily, the 21-day moving average stepped in as support. However, $48 is again acting as resistance.
Overall, at least the roadmap forward is simple.
Over $48 and AMC stock can be a long candidate, with the recent high at $52.79 as the first upside target and the 61.8% retracement near $56 as the next target.
On the downside, though, watch this week’s low and the 21-day moving average. A move below these measures that isn’t reclaimed could put $40 and the 50-day moving average in play.
Top Stock Trades for Tomorrow No. 3: Target (TGT)
The stock remains trapped below its 10-day and 21-day moving averages as active resistance, while it lost the 50-day moving average as support last month.
From here, we really need to see the stock hold up over $240 and the 21-week moving average. Should it lose these levels and close below $240, more selling pressure could come into play.
On the upside, I’m mostly focused on the September high at $247.70 and the 21-day moving average. If Target can close above these marks, perhaps it can squeeze up to the 50-day moving average.
For aggressive short-sellers, they could consider a short in Target — especially on a break of $240 — while using the $247.70 mark and the 21-day moving average as their stop-loss.
Top Trades for Tomorrow No. 4: Weber (WEBR)
Weber (NYSE:WEBR) jumped more than 7% after reporting earnings, and by the looks of the chart, this newly-public company hasn’t had the easiest run. That said, there are a few important developments on the chart.
First, after closing below the August low at $14.13 on Tuesday, Weber reclaimed that level today and even held it on a dip. That was a great long opportunity for bulls that were watching this name.
As it reclaimed $14.13, longs could use a stop-loss just below this week’s low.
Second, Weber is powering back up through the “Day One Low.” Now, WEBR stock has to contend with the 10-day and 21-day moving averages. However, as long as it’s above this week’s low at $13.91, bulls can justify a long position.
Above $16 could put the 61.8% retracement 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.