Today’s the day, as we finally get some sort of rate movement from the Federal Reserve. The markets are enjoying a two-day rally here, as the two-day meeting is underway. With that in mind, let’s look at a few top stock trades, as tech takes center stage.
Top Stock Trades for Tomorrow No. 1: Alibaba (BABA)
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If it seems like we just talked about Alibaba (NYSE:BABA) and JD.com (NASDAQ:JD), that’s because we did about a week ago on March 10. At the time, shares were plunging into no man’s land.
However, Alibaba stock surged almost 37% today, ripping higher through the gap and clearing $90. Now the $100 area looms, which was a major breakdown point last week.
This area may act as resistance, but if Alibaba can clear this mark then the $104 to $114 area is next. While this is admittedly a wide range, it’s where we find the 10-week, 21-day and 50-day moving averages, as well as the daily VWAP measure. To clear these marks likely opens the door up toward $125 to $130.
On the downside, though, keep today’s low in mind. Below that and we have a potential gap fill going the way other, down toward $80.
Top Stock Trades for Tomorrow No. 2: JD.com (JD)
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JD.com is in a similar boat, with shares soaring nearly 40% on the day. What an explosive move and it shows what happens when these stocks decline too far, too fast. It’s also a great lesson on why to not “short into the hole” as the pile-on effect can have a devastating outcome when the rubber band stretches too far in one direction.
In any regard, shares are rebounding back to the key $62 area. This zone was strong support that failed last week. If it’s resistance, JD stock may soon roll back over.
Above it and the stock will soon have to contend with the $65 area. There it finds the 10-week and 21-day moving averages, as well as the daily VWAP measure. On the downside, however, use caution on a dip below $55.
Top Stock Trades for Tomorrow No. 3: Advanced Micro Devices (AMD)
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It’s not often that we write about Advanced Micro Devices (NASDAQ:AMD) and Nvidia (NASDAQ:NVDA) where they’re at the bottom of the story. In any regard, AMD stock is looking noteworthy here as it again bounces from the $100 level.
Shares are ripping off this zone, but coming into a key area. If the market can sustain a rally after the Fed, we may be looking at a breakout for AMD and Nvidia. For now, though, we must respect the trend, which has been to the downside.
Right here, AMD stock is running into channel resistance, as well as the 200-day and 10-week moving averages and the daily VWAP measure. If it can clear these measures, it puts the declining 50-day moving average and the 61.8% retracement in play.
On the downside, though, let’s see if $110 holds support. Below that puts the $100 to $102 area on deck.
Top Trades for Tomorrow No. 4: Nvidia (NVDA)
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Nvidia has many similarities to AMD when it comes to the charts. However, it’s clearing more key levels at the moment.
Shares are pushing above the 21-day and 200-day moving averages, but it’s the area that Nvidia is in now that I’m focused on. Nvidia trading into a major downtrend resistance level (the blue line), as well as the 50-day moving average and the 61.8% retracement.
For those that haven’t noticed, the 50-day has been stiff resistance for most stocks that have been in a downtrend this year. If it can push through this area, it opens the door to the $265 area.
On the downside, a move below $230 and the 10-day moving average that’s not quickly reversed, opens Nvidia stock up to another test of the $210 area.
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.
