After a mild dip last week, bulls got back to work on Monday with another push to the upside. Here’s how a few top stock trades are shaking out now.
Top Stock Trades for Tomorrow No. 1: Apple (AAPL)
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What a trade Apple (NASDAQ:AAPL) gave bulls this morning. On Friday, there was a great dip-buying trade at the $172 area. Then on Monday, the level to watch was Friday’s high at $174.88.
When the stock opened Monday’s session, it quickly went daily up over that $175 area and flew right to the $178 trim zone. Now bulls can settle into the trade and use a break-even stop-loss for a relatively risk-free trade.
On the upside, see how Apple handles last week’s high near $179.50. Above $180 and bulls will be eyeing all-time highs near $183.
On the downside, however, watch the 10-day. Below this measure puts last week’s low in play. If Apple loses both areas, we could be looking at a dip down to the 21-day and 50-day moving averages.
Top Stock Trades for Tomorrow No. 2: Russell 2000 ETF (IWM)
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The bulls have been dominating lately, but the Russell 2000 has been a notable laggard. Up 8% from the March low and it lags the S&P 500 and Nasdaq Composite. Now the question is, can it reclaim prior support?
It’s not the end-all, be-all reading on the stock market. But having the “risk-on” small caps group rejoin the party with some pizzazz sure would be nice. For now, the iShares Russell 2000 (NYSEARCA:IWM) remains stubbornly below the $210 level. On the Russell 2000, that level is $2,100.
So far, this former support level is acting as resistance. If the IWM can reclaim it, not only does that open the door up to the 200-day moving average, but it puts the exchange-traded fund (ETF) back above a very key level. That’s the zone for bulls to watch and it really is as simple as that.
On the downside, though, a move below last week’s low at $205 puts the 21-day and 50-day in play.
Top Stock Trades for Tomorrow No. 3: Jumia (JMIA)
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Jumia (NYSE:JMIA) exploded higher on Monday on news that it will work with United Parcel Service (NYSE:UPS).
The move helped vault Jumia over $10 resistance as Jumia is now back above all of its daily moving averages. Trading names like this is very difficult, as bulls try to balance discipline with the realization that, even after such a big move on Monday — and off the lows — Jumia remains well below the all-time high.
On the upside, keep an eye on the $12.75 to $13 area. That’s where the 161.8% extension comes into play. Above that puts $15 in play, then the declining 200-day.
On the downside, however, bulls want to see $10 hold as support.
Top Trades for Tomorrow No. 4: Digital World Acquisition (DWAC)
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Social media stocks are roaring higher…with the exception of Digital World Acquisition Corp (NASDAQ:DWAC).
The stock put in its seventh straight daily decline on Monday. Worse, it’s breaking below prior support at $63.50 and uptrend support (blue line). If I’m being honest, it’s not a good look.
From here, $50 was a prior support level. If that fails, it will put the 2022 low in play at $45.20. Below that and $36 is on the table.
On the downside, we need to see where support comes into play before getting long. Otherwise, it’s akin to trying to catch a falling knife. On a rally, though, see how it handles some of these prior support levels — $63.50 and the declining 10-day — to gauge who’s in control: the buyers or the sellers.
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.
