The markets keep on storming higher, as U.S. equities again notched new record highs on Wednesday. Let’s take a look at a few of our top stock trades going into Thursday.
Top Stock Trades for Tomorrow No. 1: Tesla (TSLA)
The parabolic rise in Tesla (NASDAQ:TSLA) came to a temporary halt over the past few weeks, but the bulls are again bidding it higher — or the shorts are as they cover. Either way, it doesn’t matter who the buyer is, just that the stock is still ripping higher.
Shares rallied more than 7% on Tuesday to break out over resistance. Up another 7% on Wednesday, and Tesla stock is approaching its prior 52-week high of $968.99. Over that mark, and a squeeze up to $1,000 per share could certainly be on the table.
On a dip, I want to see the $800 to $825 area hold as support. That will keep TSLA above the 10-day moving average and uptrend support (blue line). Ultimately though, now that the 20-day moving average has caught up to the stock price a bit, maintaining over this level remains bullish.
Below, and the trade may finally start to unwind a bit.
Top Stock Trades for Tomorrow No. 2: iQiyi (IQ)
iQiyi (NASDAQ:IQ) has been on the rise, possibly from the “iQiyi and chill” catalyst. Even before the coronavirus began its rapid spread, though, IQ stock was trading better.
After bursting through short-term resistance near $25, IQ stock stopped just short of $28 resistance. Now pulling back to $25 and the 20-day moving average, aggressive bulls can take a chance on the stock near current levels.
However, a close below the 20-day moving average may force longs to stop out, as the 50-day moving average and uptrend support (blue line) could be in play in that scenario.
Should $25 hold as support, however, the recent high near $27.50 is the first upside target.
Top Stock Trades for Tomorrow No. 3: Cisco Systems (CSCO)
Cisco Systems (NASDAQ:CSCO) does not have momentum right now. While the rest of the market has been making new high after new high, CSCO stock has been struggling since July.
In August, the 200-day moving average gave way as support. A few days ago, it was resistance. Both tests are shown via blue circles on the available chart.
After apparently disappointing earnings, CSCO shares are below all of its major moving averages — as well as short-term uptrend support (blue line). Now in the $45 to $46 zone, bulls are looking for support to help buoy the stock.
If it does, look for CSCO to reclaim the 50-day moving average. If it can’t, or if support doesn’t come into play soon, the December lows near $43 may be in play. Overall, I don’t like Cisco much at this moment, as it has no momentum or trend and support is dicey.
Back above the 50-day shows some life, though, and could put the 200-day moving average in play.
Top Stock Trades for Tomorrow No. 4: Alteryx (AYX)
Last week, Alteryx (NASDAQ:AYX) smashed earnings and revenue expectations and provided better-than-expected guidance. Short of Friday’s post-earnings rally, though, AYX is having trouble rallying.
That’s as the valuation is high and after a robust rally in the first place. Consider that AYX ended 2019 right around $100 per share and tagged $160 on Monday. That’s a huge move, even if the earnings were great.
So, what do investors do?
From a technical standpoint, Alteryx looks incredibly healthy; Maybe even a bit too healthy. But remember, this name just made new highs, unlike the rest of the market which has been doing so for months now.
If AYX can consolidate above $145, it could gain steam and push even higher. I would love to buy a dip down to the $145 breakout level and/or the 20-day moving average. Below this measure, though, and $125 to $130 could be on the table.
No one said AYX isn’t a wild mover. But when Alteryx has the wind at its back, it’s a difficult trend to fight.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long AYX.