5 Top Stock Trades for Wednesday: ATVI, SHOP, CHGG, ABT, ABBV

Stock Market

Bulls keep bidding up stocks, as investors look to ride more gains in the face of the novel coronavirus. With that in mind, let’s look at a few top stock trades for Wednesday.

Top Stock Trades for Tomorrow No. 1: Activision Blizzard (ATVI)

Activision Blizzard (NASDAQ:ATVI) is set to report earnings on Tuesday after the close. It’s putting bulls in a tough spot though, with expectations climbing as shares break out to new 52-week highs ahead of the print.

I am watching two levels on a dip. The first is the $67 breakout spot over the past several weeks. Below that puts the $62 to $64 area in play, which has been support in April and May. It would also be encouraging for ATVI to hold the 20-day moving average.

Should shares rally on the number, let’s see what kind of move we get and if ATVI stock closes strong on Wednesday.

Top Stock Trades for Tomorrow No. 2: Shopify (SHOP)

Like ATVI, Shopify (NASDAQ:SHOP) is breaking out to new highs ahead of earnings. The company will report on Wednesday before the open, and now up about 100% from the April lows, it’s hard to get overly bullish.

Despite the rally, the narrative is likely to be bullish and Shopify will look good if it can hold up above $650 to $660. That was resistance over the past few weeks before Tuesday’s breakout.

Below that puts uptrend support (blue line) and the 20-day moving average in play. Below the 20-day, and the $525 to $550 zone is possible.

Top Stock Trades for Tomorrow No. 3: Chegg (CHGG)

Want to talk about explosive earnings moves? Just look at Chegg (NYSE:CHGG).

The stock burst over $45 resistance this week, surging up toward $60. Investors should be careful though, as shares approach the 1.618% extension near $62. I would be trimming into this zone, if not taking profits completely.

I would love a dip-buying opportunity near $45 down the road. Over $62.50 and $70 is possible, technically speaking.

Top Trades for Tomorrow No. 4: Abbott Labs (ABT)

For all you traders who use the platform, this beauty was flagged on Twitter (NYSE:TWTR).

Abbott Labs (NYSE:ABT) made a powerful rally off the March $62.50 low up to the April high near $100. It then gave us a nice falling wedge pullback to the 20-day moving average.

This area held as support, as shares rotate higher. Now, let’s see if we get back to $97.50-plus. Above puts the April high in play. Below this week’s low at $88.71 and the trade breaks down. ABT can see the 200-day moving average in that case.

Top Trades for Tomorrow No. 5: AbbVie (ABBV)

Another healthcare play, AbbVie (NYSE:ABBV) is making a strong move on Tuesday. The healthcare space is looking better and better lately, as funds flow into the group.

AbbVie stock is rotating over last week’s high, which also happens to be the monthly high. It puts a move up to $88, then $90-plus on the table. A fall below $80 breaks the setup.

With earnings already in the books, ABBV stock can enjoy some serious upside if momentum picks up.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, he is long ABBV.

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