After more cases of the novel coronavirus were registered over the weekend, stocks fell about 2.5% in early trading. By the afternoon, though, the S&P 500 was in positive territory. With that in mind, let’s look at some top stock trades after the reversal.
Top Stock Trades for Tomorrow No. 1: Walmart (WMT)
Shopify (NYSE:SHOP) stock is ripping higher on news that it’s partnering with Walmart (NYSE:WMT). On Walmart’s end, though, the stock is not responding as favorably.
In fact, despite the bounce in the overall market, Walmart stock ended the day on Monday basically flat.
Shares are flirting with the 200-day moving average, while the 50% retracement continues to hold as support. As weak as this comes across, it could give bulls a quick bounce trade back up toward $121 with a decent risk/reward.
A move below the 50% retracement, and bulls can stop out. On a bounce, however, look to see if shares can get back to $121 and downtrend resistance (blue line). Above that puts the 50-day moving average in play.
A break of the 50% retracement puts the 38.2% retracement in play near $113.
Top Stock Trades for Tomorrow No. 2: General Motors (GM)
Like Walmart, General Motors (NYSE:GM) is giving mixed signals and tilting toward the bears’ direction.
Shares broke below uptrend support (blue line) and the 20-day moving average after gapping lower this morning. The move comes a few days after the 200-day moving average swiftly rejected the stock.
On the plus side, though, shares are working on reclaiming the 20-day moving average and the 78.6% retracement near $28. Over $28, and bulls can try for a retest of the 200-day moving average.
A break of last week’s low is a bearish development and puts the $24 area in play.
Top Stock Trades for Tomorrow No. 3: Twilio (TWLO)
Twilio (NYSE:TWLO) continues to trade quite well, consolidating its monstrous post-earnings move by trading sideways.
With Monday’s jump, it puts Twilio up near $203 resistance as shares reclaim the 20-day moving average. Uptrend support (blue line) continues to guide Twilio stock higher, with bulls now looking for a breakout over resistance.
Over resistance puts the highs in play near $210, with a move higher sending it to fresh breakout territory. A break of uptrend support, though, puts $175 to $180 on the table. For now, I really like TWLO stock on the long side.
Top Trades for Tomorrow No. 4: Nio (NIO)
Electric car stocks are maintaining their charge, evidenced by Nio (NYSE:NIO) climbing about 12% on Monday.
Shares are working on their fourth-straight week of gains, after the stock pushed through major resistance at $5.50 earlier this month.
From here, let’s see if Nio stock tests up to the 50% retracement at $7.50 or down to hopeful support at $5.50. Over $7.50, and shares can move up toward $9 — where it will find the 61.8% retracement.
Top Trades for Tomorrow No. 5: TakeTwo Interactive (TTWO)
Take-Two Interactive Software (NASDAQ:TTWO) continues to hold up pretty well. Last week, shares held up well despite strong selling pressure in the overall market. That’s as former resistance at $132.50 is acting as support.
If TTWO stock can go weekly-up and rotate over $138, it could send Take-Two stock up into the $142 to $144 area. Above that puts $150 in play, the high from May.
Below $132.50 and the 50-day moving average, however, puts the 200-day moving average on the table.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, he did not hold a position in any of the aforementioned securities.