The global stock markets were on the move on Monday and the U.S. followed suit, bursting higher on the day. With that in mind, let’s look at a few top stock trades moving forward.
Top Stock Trades for Tomorrow No. 1: Tesla (TSLA)
Tesla (NASDAQ:TSLA) has been in its own version of “Ludicrous Mode.” Shares are up 23% over the past three trading sessions, and 38.5% over the past five.
That begs the question of, what’s next? I flagged the $1,350 level as one possible landing spot, which is the 161.8% extension. If this thing really goes nuts, perhaps it puts the two-times range extension in play, up at $1,587.
That said, keep in mind there is a lot of air under this one. There are two pretty large gaps from the last few days and if history is of any use, these will eventually be filled.
If I’ve been long Tesla as a trade, I’d be trimming into this move and raising my stop.
Top Stock Trades for Tomorrow No. 2: Amazon (AMZN)
Amazon (NASDAQ:AMZN) is going berserk as well, as it too grinds to new all-time highs on Monday.
On a dip, I’d love to see the $2,750 to $2,800 area act as support. That is, unless the 20-day moving average buoys the name on its next pullback.
If shares continue to move higher, look for the 261.8% extension up near $3,090. This name burst through the $3,000 level, so another $60 a share — or about 2% — shouldn’t be that difficult of a feat.
That said, shares are overbought in the short term.
Top Stock Trades for Tomorrow No. 3: Tilray (TLRY)
Tilray (NASDAQ:TLRY) remains on traders’ radar, even though it hasn’t been trading all that well since topping out in late May.
The $7 level continues to hold as support, putting a test of the 50-day moving average and downtrend resistance (blue line) in play with a slightly larger rally. Over $8.50 and it will clear these marks, putting the $9.75 level potentially in play.
What is relevant about $9.75? This mark was resistance in March and April, short-term support in May and is the gap-fill mark from June. In other words, it’s noteworthy.
On the downside, avoid this one on a break of $7. It will almost instantly put the $5 to $6 area on the table.
Top Trades for Tomorrow No. 4: Sea LTD. (SE)
Sea Ltd (NYSE:SE) remains hot, hot, hot! The stock has more than doubled since the start of May and if bulls could have their way, the rally won’t stop anytime soon.
Unfortunately, it might be running out of momentum.
Right now we’re looking at a bearish engulfing candle. That’s where the body of the current candle fully “engulfs” the prior candle. That is to say, it opens above the prior close, and closes below the prior open.
It’s not a good technical development for longs. That said, the 20-day has been solid support, as has the low-$100s area. Let’s see if either of these levels acts as support. Below puts the 50-day moving average in play.
Top Trades for Tomorrow No. 5: Dominion Energy (D)
Warren Buffett’s finally making some moves, with his Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) firm buying $9.7 billion worth of assets from Dominion Energy (NYSE:D).
Judging by the chart of D stock though, the Oracle got the better end of the deal. It’s only salt in the wound for Dominion investors as Berkshire stock rallies.
Shares were putting in a series of lower highs before Monday’s fall, but then broke below the 200-day and 50-day moving averages as well. Now finding support near $75, bulls will want to see the May low of $73.74 hold as support.
On a rally, let’s see if the stock retests $80 and its key moving averages.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret did not hold a position in any of the aforementioned securities.