Stocks are under pressure Tuesday, as coronavirus concerns again dominate the conversation in the stock market. That said, let’s look at a few top stock trades heading into the holiday-shortened trading week.
Top Stock Trades for Tomorrow No. 1: BlackBerry (BB)
BlackBerry (NYSE:BB) stock continues to bleed lower, but investors are looking to turn around the ship.
After bottoming in October, shares have been participating in a slow but steady trend higher. After reclaiming the 100-day moving average in December, BB is now finding this measure to be support.
However, Tuesday’s rally is being cut short, as both the 20-day and 50-day moving averages are setting up as resistance. For traders, this gives us an opportune setup.
If support at the 100-day moving average fails, it puts the $5.25 to $5.50 zone in play. Should resistance give way, however, it puts the $6.50 to $6.75 zone on the table.
Top Stock Trades for Tomorrow No. 2: Luckin Coffee (LK)
Luckin Coffee (NASDAQ:LK) continues to shake off the short-report from Muddy Waters. And despite the coronavirus-related revenue warning from Apple (NASDAQ:AAPL), LK is rallying Tuesday — up over 6%.
The $34 mark held impressively, as LK has now reclaimed all of its major moving averages in the past few sessions. Now flirting with a move over $40, bulls are still in control of Luckin stock.
If LK can clear $40, technically speaking, it puts $50 back on the table. Given the coronavirus headlines, however, it’s hard to imagine LK stock getting back to this level in rapid fashion. Above all else, though, we follow price, not news.
Below the 50-day moving average, and $34 is back on the table.
Top Stock Trades for Tomorrow No. 3: Advanced Micro Devices (AMD)
Advanced Micro Devices (NASDAQ:AMD) continues to move well, surging to new all-time highs on Tuesday.
Last week, AMD burst up to and over $50, drifted higher into Nvidia’s (NASDAQ:NVDA) earnings and continued rallying after the report. From here, I want to see if shares can get to $60.
It’s worth noting that AMD is running into uptrend resistance (thin blue line), although I don’t like to limit a stock’s potential with these types of measures. Still, it’s there and worth pointing out.
On a dip, see if the $54 to $56 zone acts as support, as well as the 20-day moving average if it catches up before a pullback. Below puts $52 in play.
Overall, AMD continues to move really well for the bulls.
Top Stock Trades for Tomorrow No. 4: Walmart (WMT)
Walmart (NYSE:WMT) missed on earnings, reported in-line revenue and disappointed with its outlook and still managed to rally slightly on the day. That’s how you know buyers are beating out the sellers right now.
The stock’s maintaining above the 50-day moving average, but struggling with $120 — a notable level over the past six months. If WMT can clear $120, $124 is technically possible, although shares have struggled to maintain traction above $122.
Either way, north of $120 is bullish for Walmart. What’s not bullish? A close below the 50-day moving average and short-term uptrend support (blue line). That would put $114 and the 200-day moving average in play.
Top Stock Trades for Tomorrow No. 5: Macy’s (M)
Macy’s (NYSE:M) has a similar setup to BlackBerry, which includes breaking out over long-term downtrend resistance and a recent push through the 100-day moving average (which is now acting as support).
Below the 100-day moving average, however, and the tone again shifts more bearish.
It will put uptrend support (blue line) in play, with sub-$14 possible on a move below that. If the 100-day moving average holds as support, though, look for a rebound. Back over the 20-day and 50-day moving averages and $17.50 to $18.50 is possible. Over the latter, and $20 is possible.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long AAPL and NVDA.