U.S. stocks were mixed with the midterm elections being held on Tuesday. Investors want to see which party will seize control of the House and Senate before making any significant buy/sell decisions. That doesn’t leave us short of top stock trades to choose from though.
Top Stock Trades for Tomorrow #1: Advanced Micro Devices
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Advanced Micro Devices (NASDAQ:AMD) jumped more than 8% at one point Tuesday after it was announced that the company will supply chips to Amazon’s (NASDAQ:AMZN) data center, possibly impacting Intel (NASDAQ:INTC).
The stock bounced off $16 support and held the 200-day relatively well despite a violent selloff. This is exactly what we’re looking for.
In any regard, shares are now back above $20 and at a key level. Can they hold above this mark and get back above channel support (blue line)? If it can, the 21-day near $23 and channel resistance near $24 are in the cards. If it can’t, $18 and the 200-day are back on the table.
Top Stock Trades for Tomorrow #2: CVS Health
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A top and bottom-line beat propelled shares of CVS Health (NYSE:CVS) higher by 5% on Tuesday. If it can make it to $78-ish, CVS will fill the gap from last month.
Will it act as resistance?
That much is unclear. The stock has been trading pretty well since its lows last week, a perfect touch of the 200-day moving average. Should CVS consolidate for a few days, look to see that it stays over its 50-day moving average. Below and its 200-day is back on the table.
Should CVS clear $78, look for a retest of downtrend resistance (black line). Over it and a fresh breakout could occur.
Top Stock Trades for Tomorrow #3: Toyota Motor
Continuing the better-than-expected earnings theme in the auto industry, Toyota Motor (NYSE:TM) gave a solid outlook, raising its full-year expectations.
The $114 level held as support, but investors will want to be mindful of Toyota until it can close above the 50-day and downtrend resistance. I will keep this on my watchlist to see if it is able to. A break below $114 and more lows could follow.
Top Stock Trades for Tomorrow #4: Mylan
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Shares of Mylan (NYSE:MYL) are surging more than 17% on Tuesday after the company beat on earnings and missed on revenue expectations.
What a move.
Unfortunately, if you missed today’s 17% gain, you might be out of luck for a while. Although MYL could push its way through downtrend resistance at $38, the 200-day moving average at $38.50 and resistance between $39.50 and $40, I have my doubts it will.
While that represents about 10% of potential upside, there’s no telling which resistance point will kick MYL down. I’d rather give the stock a few days to see if it can consolidate above the 100-day moving average. If not, see if range support near $35 and the 50-day can hold and go long there for a better risk/reward.
Top Stock Trades for Tomorrow #5: Eli Lilly
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Midterms are overshadowing a number of big earnings reports, the last of which on the list includes Eli Lilly (NYSE:LLY). Despite beating on earnings and revenue expectations, shares are down 4%.
The chart is simple. After such a big run, shares are set to make a decent move in one direction or the other. Above $108 and we should get a test of channel resistance near $112.50 (blue line). Above it and the $116 highs are on the table.
Below $105 and the 100-day is the next line in the sand. Below it and the 200-day is in the cards.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell was long AMZN.
