The market tried to push higher on Monday, but as has been the trend lately, the sellers stepped in and sold it lower into the afternoon. With that in mind, here are a few top stock trades we’re watching going into Tuesday.
Top Stock Trades for Tomorrow No. 1: Gold (GLD)
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I want to highlight two charts here, with the weekly and the daily. Both highlight different levels and thus, both are worth a glance.
This morning I said that support continues to “bend but not break.” In this case, support refers to the 10-day moving average and the $1,961 level. On both charts, one can note the significance of the latter.
After nearly hitting new all-time highs last week, gold reversed course. Surely, there is some pre-Fed profit-taking underway with the Fed expected to raise interest rates on Wednesday.
Currently, I continue to watch the $1,961 and 10-day moving average. If it holds, we need to see gold clear the $1,977 area, then reclaim $2,000.
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However, at a time of heightened volatility, one must be prepared for potentially lower prices. As it stands, gold is teetering on a weekly-down rotation. If it pans out, it puts the 21-day moving average in play. That’s followed by the $1,900 area, where the 61.8% retracement comes into play, alongside the 10-week moving average.
Top Stock Trades for Tomorrow No. 2: GameStop (GME)
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GameStop (NYSE:GME) has always bothered me a bit. It was all fun and games while it was squeezing higher during the Reddit days, but those days are over. While there are positives here, it’s hard to argue that GameStop is a bargain at current levels.
Last month it tried to reclaim the fourth-quarter low, but it was resistance along with the declining 50-day moving average.
Now below all of its major moving averages, GameStop stock is undercutting the 2021 low at $86.29. If it reclaims this level, bulls may be able to play it for a reversal back up toward the $100 area and/or the 10-day moving average.
If it can’t reclaim it though, then we could see a further move lower in the stock.
Top Stock Trades for Tomorrow No. 3: Pfizer (PFE)
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Pfizer (NYSE:PFE) embarked on a long and painful decline, falling 26% from its December high to the recent low. However, it’s starting to change its tune.
While Covid seems to have faded from the headlines due to issues in Eastern Europe, it’s still very much present in today’s world — and in particular, is creating issues in China. As a result, that’s got the vaccine stocks back in play.
Now working on its fourth straight daily gain, Pfizer stock held the 50-week moving average when it corrected lower last month. After bouncing, it then held the 200-day moving average as it put in a higher low.
We’re getting to an interesting place on the chart, though.
The stock has filled the gap at $52.24 and is trying to close above the 50-day for the first time since January. If it can do so, it puts $53.50 in play, followed by $55.50. On a dip, I want to see the $49.50 to $50 area hold as support.
Top Trades for Tomorrow No. 4: Qualcomm (QCOM)
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The semiconductor space was once the go-to industry for tech investors. Now it keeps on getting pummeled and Qualcomm (NASDAQ:QCOM) is no exception.
Last Monday (March 7), Qualcomm stock plunged below prior support near $158 and despite multiple attempts to reclaim it, shares were rejected on each rebound.
Now rotating below last week’s low, bulls are hoping the 21-month moving average holds as support. If it does, look for a bounce back to last week’s low at $147.88, then $150. Above $150 puts the 200-day in play.
Should Qualcomm continue lower, the $138.85 gap-fill could be in play.
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.
