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)
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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)
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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)
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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)
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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.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
