After a nice boost on Friday, the stock market took a breather on Monday. That doesn’t mean there were a shortage of individual movers, though. With that in mind, let’s look at a few top stock trades for Tuesday.
Top Stock Trades for Tomorrow No. 1: AMC Entertainment (AMC)
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Last week, AMC Entertainment (NYSE:AMC) was rotating higher — going monthly-up over $44.44 — ahead of earnings. However, the post-earnings reaction was not good.
It sent the stock back below downtrend resistance (blue line) and several key moving averages. However, shares are now back above the 21-day, 50-day and 10-week moving averages, as well as downtrend resistance.
Now let’s see if shares can go monthly-up again, followed by clearing this month’s high near $46.
If it can do that, we could see $50 next. Over $50, and the third-quarter high near $52.80 is in play, followed by the 61.8% retracement just shy of $56.
Top Stock Trades for Tomorrow No. 2: Tesla (TSLA)
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We flagged a pretty sweet trade in Tesla (NASDAQ:TSLA), even for those that aren’t willing to hold this stock overnight.
The stock gave us a “look below and fail” of last week’s low at $987.31. Reversing off that level now, bulls were able to go long and use today’s low as their stop.
From here, keep in mind there are plenty of overnight headline risks. As it stands, though, the setup is rather straightforward.
On the downside, bulls want to see Tesla hold last week’s low at $987.31, along with Monday’s low. Below both marks puts the 10-week moving average in play, followed by the gap-fill near $910.
On the upside, however, a daily-up rotation would be a good start above Monday’s high, but bulls mostly want to see Tesla clear the 10-day and 21-day moving averages. That’s followed by the $1,100 to $1,120 area.
Top Stock Trades for Tomorrow No. 3: Boeing (BA)
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Boeing (NYSE:BA) gave investors a pretty clean move today, not only clearing a key resistance level but also giving us a rotation over the 200-day moving average and the prior month’s high at $232.10.
While we couldn’t plan for a weekend gap-up, we were prepared for the rotation that took place.
If it can maintain above these levels, it could open the door up to the August high near $240, followed by the 61.8% retracement and psychologically relevant level of $250.
On the downside, though, losing the 200-day moving average leaves BA stock vulnerable to a test of Monday’s low at $226.92. Below that, and the gap is at risk of being filled.
Top Trades for Tomorrow No. 4: CrowdStrike (CRWD)
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Man, CrowdStrike (NASDAQ:CRWD) was a disaster on Monday. I was watching the pre-market weakness into the mid-$260s but this stock has just kept on chugging lower despite multiple support levels in play near that mark.
While it’s catching a bid off the lows, it’s somewhat odd to see a stock shed 10% in a day when the overall market was holding up, particularly when the selling catalyst is simply an analyst downgrade.
On the upside, let’s see if CRWD stock can reclaim this month’s prior low at $263.23. Just above that and it will need to reclaim a number of key measures, such as the 10-week and 50-day moving averages. Otherwise, bulls risk these measures turning into resistance.
On the downside, however, a move below Monday’s low could set up a reversal trade, but continual weakness puts channel support and the 200-day moving average on the table.
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.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
