After recovering from new lows on Friday and finishing near flat for the session, the bulls came out swinging on Monday. With that in mind, let’s look at a few top stock trades for Tuesday.
Top Stock Trades for Tomorrow No. 1: JPMorgan (JPM)
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When was the last time we talked about JPMorgan (NYSE:JPM). Heck, when was the last time we talked about any bank stock? That tells you about the trend in this sector.
JPMorgan stock is pressing higher and going weekly-up on positive commentary from the company. However, it also faces quite a notable area on the chart. Shares are running into the 10-week and 200-week moving averages, as well as a prior support zone turned into resistance.
If it can clear $128.70, we could see a significant push higher — potentially all the way up toward $137.
Below $125 and bulls must be respectful of current resistance.
Top Stock Trades for Tomorrow No. 2: Xpeng (XPEV)
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Xpeng (NYSE:XPEV) had a chance to rally on Monday when it reported earnings before the open. That wasn’t the case though, with shares now trading below last week’s low.
It’s very clear that the 10-week moving average remains active resistance for this stock. In fact, that’s been the case all year, only now, XPEV sits below the key $25 level.
$18 is the new line in the sand. If the stock loses this level, then I have to think the 2020 lows are back on the table.
On the upside, watch the 10-week. Over $25 and the 21-week moving average could be in play.
Top Stock Trades for Tomorrow No. 3: Palo Alto Networks (PANW)
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Palo Alto Networks (NASDAQ:PANW) ripped higher on Friday following strong earnings results and is now pressing higher again.
It is now looking for a two-times weekly-up rotation by trying to clear the last two weeks worth of highs. Over $504.50 could open the door up to the $530 to $540 area. Above $550 and $600 could be in play, but PANW would need one heck of a rally to get that action going.
On the downside, I’m not watching much. Either this goes weekly-up over $504.50 or it doesn’t. If it does, then this week’s low must hold.
Top Trades for Tomorrow No. 4: Exxon Mobil (XOM)
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Exxon Mobil (NYSE:XOM) has been a market leader, as has the energy sector.
Shares are hitting new highs on the year with Monday’s rally and now puts our $96 to $97 price target on the table. Above that opens the door to $100-plus, but this would be a reasonable trim zone for longs.
On the downside, investors want to see this one hold the $89 level and the 10-day moving average. Below these measures and volatility can pick up a bit.
Top Trades for Tomorrow No. 5: Ark Innovation Fund (ARKK)
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The Ark Innovation Fund (NYSEARCA:ARKK) has been volatile lately, but it did not retest its lows with the overall market last week and continues to hold up. Last week also gave bulls an inside week.
An inside-and-up rotation over $44.50 could open the door up to the $50 area. Near there we have the declining 10-week moving average, while $52 is a prior support level turned resistance.
On the downside, a weekly-down rotation below $39.98 could open the door back down to $35.
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.
