It was another strong day for the bulls on Monday, with the indices bouncing after a strong Friday. Now the question is, how much of the gains can they keep through the rest of the week? With that in mind, let’s look at a few top stock trades as we turn the calendar to February.
Top Stock Trades for Tomorrow No. 1: Spotify (SPOT)
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Shares of Spotify (NYSE:SPOT) stock erupted higher on Monday, climbing more than 13% on the day. The move comes amid controversy and as the stock was hitting its lowest level since May 2020.
Now rallying, Spotify stock is running into last week’s high at $194.23 and the declining 10-day moving average.
If it can push through this area, $200 is next, followed by the declining 21-day moving average.
On the downside, though, look for resistance near the current area. If it comes and the stock loses the most recent four-hour low near $190.50, we could see more downside in the short term.
However, bulls do not want to see this stock lose $180.
Top Stock Trades for Tomorrow No. 2: Exxon Mobil (XOM)
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Exxon Mobil (NYSE:XOM) is scheduled to report earnings tomorrow before the open, and I want to take a look at this one because we’ve been all over the energy trade lately.
Exxon is hugging last week’s high and is in a clear uptrend.
If we push higher on earnings, let’s see if the stock can tag the 261.8% extension up at $80.
On the downside, there are two clear levels to watch. The first is $74, a level that has seen plenty of interest as both support and resistance. It’s also where the 10-day moving average comes into play.
If that area isn’t support, then let’s keep an eye on last week’s low near $71.40, as well as the 21-day moving average. Either zone could be a buy-the-dip opportunity on a bearish post-earnings reaction, so keep an eye on it.
Top Stock Trades for Tomorrow No. 3: United Parcel Service (UPS)
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Like Exxon, United Parcel Service (NYSE:UPS) will report earnings before the open on Tuesday. However, unlike Exxon, the stock has not been in a clear uptrend.
Currently holding the 50-week, UPS stock has clear resistance just overhead. That comes in the form of the 21-week moving average and the weekly VWAP measure. If it can clear these marks, as well as the 10-week, then it could put $220 resistance in play.
This level has been consistent resistance since the second quarter of 2021.
On the downside, though, a break of last week’s low leaves UPS stock vulnerable to the $175 to $180 zone, as well as the 21-month moving average.
Top Trades for Tomorrow No. 4: Boeing (BA)
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Last but not least is Boeing (NYSE:BA), which continues to trend lower. This one has been trending in the news on Monday, but despite the nice pop in the stock price, the chart still remains a mess.
Shares continue to make a series of lower lows and remain trapped below all of the daily moving averages. It’s struggling with $200 and while it could push up to the $205 to $210 zone, it will likely have a hard time clearing it.
If it can, the 200-day moving average is next, followed by $230-ish.
On the downside, however, the $185 to $190 area is desperately trying to hold as support. Should it fail, there is a big gap-fill down near $158.50. However, what bulls really need to see a series of higher lows start to form.
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.
