We kicked off the 2022 trading season on Monday, but without a lot of fanfare. The markets opened higher but traded sideways despite a big jump in yields. With that in mind, let’s look at a few top stock trades and keep an eye on yields to see how they impact tech stocks going forward.
Top Stock Trades for Tomorrow No. 1: Apple (AAPL)
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Apple (NASDAQ:AAPL) was finally able to make new all-time highs and become the first $3 trillion company. What a stellar accomplishment.
As we have been saying for a while now, this is an incredible business — and the stock trades like it.
With the way it’s moving now, we are still looking for a potential push up to the $188 to $194 area as the next upside target. That’s where several key extension levels come into play from several important ranges.
If and when Apple gets there, we’ll need to re-evaluate the stock. On the downside, I’d love to see the $180 to $182 area become support, but we may need a stronger breakout for that to happen.
Until then, though, let’s see that the 10-day and 21-day moving averages continue to act as support.
Top Stock Trades for Tomorrow No. 2: PayPal (PYPL)
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I took a closer look at PayPal (NASDAQ:PYPL) on Monday morning, as we turn the monthly and yearly calendars over.
Specifically, I’m looking to see if PayPal can go monthly-up over $197.69, following a doji candle in December (showing some indecision) and after a slight dip below the November low.
Was that the bottom? That’s the hope.
A monthly-up rotation could be a quick opportunity to snag a nice move in the stock with limited risk. If it can’t rotate over this level, keep an eye on the $179 to $180. A move below that zone could put $175 or lower on deck.
Top Stock Trades for Tomorrow No. 3: Twitter (TWTR)
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Twitter (NYSE:TWTR) is showing some concerning signs but isn’t quite breaking down. Shares are trapped below the $45 level and have now lost the 10-day and 21-day moving averages.
That’s not great, especially with the market near all-time highs. On the flip side, uptrend support is holding…for now.
If this trend line breaks (blue line), then a dip down to $41 could be in the cards.
On the upside, however, a breakout over $45 puts the 50-day moving average and the December high near $48 in play.
Top Trades for Tomorrow No. 4: Cisco (CSCO)
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Cisco Systems (NASDAQ:CSCO) is another buy-the-dip name I have been watching. Shares were looking a little toppy last week and we’ve since gotten three-straight daily declines.
The stock had a major run-up from $41 in November to more than $64 last week. Now dipping to the 10-day moving average, Cisco stock is bouncing.
From here, let’s see if Cisco can bounce back to the recent high near $64. Above $64 could put the 161.8% extension near $66 in play.
On the downside, though, be on the lookout for a break below last week’s low, at $62.28. That could put the prior breakout area in play near $60.50, along with the 21-day moving average.
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.
