We’re in the thick of earnings season, with more big reports due up after the close and again on Thursday. With that in mind, let’s look at a few top stock trades going into the back-half of the week.
Top Stock Trades for Tomorrow No. 1: Advanced Micro Devices (AMD)
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Advanced Micro Devices (NASDAQ:AMD) ripped higher at the open following better-than-expected earnings. However, those gains were halved just a few hours later.
That said, just look at how far this stock has come in the last few days after its violent bounce off $100. Shares came up just short of the December low and the 50% retracement.
However, as long as it remains above last week’s high and the 10-day moving average, bulls may be able to maintain control. If lost, the $110 level and the 200-day may be next.
Above the 50% retracement puts the 50-day and the daily VWAP measure in play.
Top Stock Trades for Tomorrow No. 2: Nvidia (NVDA)
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As for its older brother, Nvidia (NASDAQ:NVDA) rallied in sympathy with AMD stock Wednesday morning, although not as much. Both of these stocks are winners, both surged to new highs in November and both corrected about 39.5%.
A lot of similarities — just like Wednesday morning’s fade.
I liked Nvidia off the weekly-up rotation near $240 and also liked the idea of trimming the stock near $260, around this morning’s open.
What I want to see now is similar to AMD stock. Can Nvidia hold the 10-day moving average and last week’s high?
If it can’t, the 200-day is on deck. If it can, though, we want to see it take out today’s high and push into the $275 area. Above that puts the 50-day in play, followed by $293-ish.
Top Stock Trades for Tomorrow No. 3: Facebook (FB)
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I typically do four stocks in this line-up, but I wanted to throw my levels out on Meta (NASDAQ:FB). I’ll keep it quick.
Near the middle of its recent range, Facebook has already enjoyed five big rallies. On the upside, watch $336-ish, which is the 50% retracement and 200-day.
Above that is the $348 to $352 area, which is the 61.8% retracement, fourth-quarter resistance and the December high.
On the downside, however, watch $308 to $310. Below that and $300 is in play.
The company reports tonight, as does the next company on our list.
Top Trades for Tomorrow No. 4: Qualcomm (QCOM)
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I have said for weeks now that Qualcomm (NASDAQ:QCOM) has a beautiful weekly chart and the stock’s bounce from the 21-week moving average highlights it.
Now back into a potential resistance zone, we want to see if earnings can break this one out. If it does, $195.75 is an area to keep an eye on. It’s the larger zone’s 161.8% extension and just above the current highs.
If it’s anything like AMD’s report, though, $200-plus could be on the table. In that case, keep an eye on $215, as we look for the current range’s next extension level.
On the downside, though, keep $174.50 in mind — last week’s high and the 10-week moving average — followed by the breakout level near $168.
Top Trades for Tomorrow No. 5: AbbVie (ABBV)
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Lastly, we have AbbVie (NYSE:ABBV). This stock has been a relative strength leader, and we have liked it for that reason. However, it has been sluggish today despite reporting earnings.
Shares were able to open lower and push to new highs as bulls bought the dip. That’s great.
From here, though, $138 will be a key line in the sand, in my opinion. If it holds, bulls are in control and can potentially look up to the $144 area for the next upside target.
On the downside, however, a break and a sustained move below $138 opens the door to lower prices.
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.
