After some de-escalation in Eastern Europe, stocks popped higher on the day and maintained those gains through the afternoon on strong breadth. With that in mind, let’s look at a few top stock trades going into Wednesday.
Top Stock Trades for Tomorrow No. 1: Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) surged on the day, up more than 9%. It’s a welcomed move for bulls, who have been waiting on this stock to find its stride all month.
On the plus side, the $240 area has continued to hold as support, while the stock is now up through the 10-day and 21-day moving averages. From here, I want to see if Nvidia can push through last week’s high up at $269.25, along with the key $270 area and the declining 50-day moving average.
So far the declining 50-day has been a huge problem for growth stocks — including Advanced Micro Devices (NASDAQ:AMD) after earnings.
Above that measure, though, and the $277 to $280 area is in play, followed by $294, then $300-plus.
On the downside, however, should Nvidia stock lose its 10-day and 21-day moving averages, then $240 is going to be back on watch. That’s followed by the 200-day.
As much as I want to buy the dips in this stock on the short-term timeframes, it reports earnings after the close tomorrow.
Top Stock Trades for Tomorrow No. 2: Virgin Galactic (SPCE)
Virgin Galactic (NYSE:SPCE) was up about 10% in premarket trading. And given the news, short interest and beaten down nature of this stock, I was surprised it wasn’t up more.
Ending the day up nearly 32%, I guess we have our answer.
Back above $10 is a good start and it’s the level that bulls want to see Virgin Galactic stock stay above going forward. Below the $9.75 area and this stock can really start to unwind some of these nice gains.
Above Tuesday’s high opens the door to the declining 50-day. A move above that measure puts the gap-fill in play at $12.06, then channel resistance.
Top Stock Trades for Tomorrow No. 3: Airbnb (ABNB)
Airbnb (NASDAQ:ABNB) has earnings due up tonight and man, this stock has been trading incredibly well lately. I wanted to get some down around $130, but was clearly too greedy looking for lower prices.
In any regard, this stock is now trading near $180. On a pullback, I would love to see the 10-day moving average hold as support. There’s also a nice floor of support in that area near $165, with the 50-day moving average just below.
We’re already above last month’s high, so should Airbnb see a further rally on earnings, let’s see if the stock can clear and close above the 61.8% retracement, putting the $185 level in play.
Top Trades for Tomorrow No. 4: Zoetis (ZTS)
At one point, I was looking to buy Zoetis (NYSE:ZTS) because it was such a strong stock. I did buy it as a trade — twice in fact — but it couldn’t hold support so I got out of it and I’m glad I did.
This stock had a one-way ticket from $250 down to $185 and it’s still having trouble.
The company reported earnings this morning and it’s still struggling to get going. Sellers keep hitting the rallies above $200, while the shares are struggling with the 10-day and 21-day moving averages and are stuck below the 200-day.
All of this is to say that a daily-down rotation could put $194.42 in play — this week’s low. However, a move below that level that isn’t quickly reversed puts sub-$190 on deck.
On the upside, however, a move over the 200-day — and even better, a close above it — could put more upside in play.
On the date of publication, Bret Kenwell held a long position in NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.