It was a mixed day in the market and at this rate, the bulls will take anything that isn’t a bludgeoning. Tech helped lead the way higher, as did bonds. With all of this in mind, let’s look at a few top stock trades now.
Top Stock Trades for Tomorrow No. 1: Tesla (TSLA)
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Tesla (NASDAQ:TSLA) stock broke the April low on Monday and despite Tuesday’s rally, this level acted as resistance on the day. That said, Tesla is holding the 21-month moving average as support.
We’re in a tight two-day range and that can be said for a lot of stocks right now. If the stock can go daily-up over Tuesday’s high and reclaim the April high in the process, we could be looking at a quick move back to the $870 area. Above that gets us $900 and the 200-day.
On the downside, keep a close watch on this week’s low. A break of this level and a failure to reclaim it could open the door down to the March low near $756, then this year’s low at $700.
Keep in mind that Tesla is a potential market-mover — and it can definitely move the Ark Innovation Fund (NYSEARCA:ARKK).
Top Stock Trades for Tomorrow No. 2: Palo Alto Networks (PANW)
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You may remember Palo Alto Networks (NASDAQ:PANW) from a few weeks ago, where I explained that it was breaking support but I was hesitant to be a seller in this name given its relative strength.
Specifically, I said: “If this continues lower though, $550 is not out of the question. A real hammering puts $500 in play (and would have me wishing I didn’t call PANW a short). Aggressive shorts can use $570 as their stop-loss.”
Well, it’s true — I regret it.
Anyone who did sell this name made out well as it dropped all the way into the $450s. From here, it just undercut the January low and is reversing nicely.
If PANW stock can reclaim the 50-week moving average, it can fill the gap at $500. Above that could open the door to the 10-week and 21-week moving averages up near $550.
However, should the stock continue lower and take out the recent lows, the $400 breakout area could be on the table.
Top Stock Trades for Tomorrow No. 3: SoFi Technologies (SOFI)
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This was a weird one, with SoFi Technologies (NASDAQ:SOFI) sinking earlier in the day, then getting halted just after 11:15 after accidentally releasing its earnings in the middle of the day.
The stock is rallying on the results, though, after hitting new all-time lows earlier in the day.
On the upside, I want to see how SoFi handles $6. Assuming it can get there, this was a prior support area until today. Above that puts the May high in play near $7.15. That’s followed by $7.73.
On the downside, though, the main levels to watch are $5 and Tuesday’s low. A break of the former puts the latter in play and below the latter puts SoFi stock in no man’s land.
Top Trades for Tomorrow No. 4: AbbVie (ABBV)
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AbbVie (NYSE:ABBV) was on my go-to list for most of this year because of its relative strength. After stabilizing following a tough pullback, this one is back in play. However, we have to wait for the setup.
After an inside week and following earnings, an inside-and-up weekly rotation over $153.50 is in the cards. It tried today but couldn’t hold. If it can do it again and clear the 10-week moving average, $160 to $162 could be in the cards as a trim spot.
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.
