After taking a breather on Monday, stocks pressed higher again on Tuesday. Are the bulls finally taking back control? Let’s look at a few top stock trades going into midweek.
Top Stock Trades for Tomorrow No. 1: Ford (F)
Click to Enlarge
Ford (NYSE:F) shares are finally giving us the rotation we were looking for coming into the week.
In back-to-back weeks, Ford stock topped out at $16.90, giving us the potential for a two-times weekly up rotation over that level. It did so today, with a powerful thrust up over $17.
From here, I’m watching the weekly VWAP measure near $17.40 to $17.50, followed by the 10-week moving average. Above that puts the $18.50 area in play, along with the declining 50-day moving average.
If it really gains steam, keep an eye on the gap-fill level at $19.87.
On the downside, however, I really want to see Ford stock stay above this week’s low and the 50-week moving average.
Top Stock Trades for Tomorrow No. 2: Tesla (TSLA)
Click to Enlarge
Tesla (NASDAQ:TSLA) shares were rockin’ on Tuesday, up almost 8%. Now rallying in six-straight sessions, shares are up almost 30% from last week’s low.
The move has Tesla stock rallying right into the 50% retracement of the current range, along with multiple VWAP measures and the 21-week moving average. Importantly, though, it cleared the 50-day yesterday and downtrend resistance on Tuesday.
On the upside, keep an eye on $1,000. If it’s hurdled, the 61.8% retracement is likely next, up at $1,035. On the downside, though, bulls want to see Tesla stay above $900 and the 50-day.
Top Stock Trades for Tomorrow No. 3: Palo Alto Networks (PANW)
Click to Enlarge
Palo Alto Networks (NASDAQ:PANW) is another name we have been watching, this time for the potential of a two-times daily-up rotation over $578.25.
Shares opened just above this mark and quickly vaulted PANW stock up through $600 and new all-time highs.
I would love to see a close above $600, but it’s not clear we’re going to get it. If we do and Palo Alto Networks can continue higher, the 161.8% extension could be in play near $650.
We have liked Palo Alto as it has shown relative strength vs. the rest of the market and vs. its peers in tech. Think about it. How many tech stocks do you see hitting new 52-week or all-time highs right now?
Top Trades for Tomorrow No. 4: GameStop (GME)
Click to Enlarge
GameStop (NYSE:GME) is getting back in the mix, roaring higher by more than 30% on Tuesday.
It will mark the stock’s sixth straight daily gain, with Tuesday’s surge sending it above the 61.8% retracement and the daily VWAP measure, along with the 10-day, 21-day and 50-day moving averages.
Now we need to ask two things: Will the area it just cleared — call it $110 to $112 — act as support, and/or can GameStop clear resistance near $129.50?
If it can clear $130, it opens the door to $150, then near $160 and the 200-day. Should support fail on the downside, keep $100 on your radar. Below it and a retest of the lows becomes more likely.
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.
