The selling we saw on Friday didn’t slow much on Monday, with poor breadth and plenty of dips. That said, we saw a lot of stocks flip green too, so there were some silver linings. With all of that in mind, let’s look at a few top stock trades for Tuesday.
Top Stock Trades for Tomorrow No. 1: Bitcoin (BTC)
While stocks are getting all the talk today, don’t forget about cryptocurrencies. Bitcoin (CCC:BTC-USD) and others are seeing some selling pressure too, with Bitcoin prices down about 2.7%.
Bitcoin has done a great job holding the 50-week moving average for a few months now. However, it opened below that measure this week and has yet to reclaim it.
It’s also into a notable support zone, which bulls need to see hold. A close below last month’s low near $28,800 and we can see further selling pressure.
On the upside, let’s see if Bitcoin can reclaim its 50-week moving average. Above that, and its 10-week and 10-month moving averages become the focus.
Top Stock Trades for Tomorrow No. 2: IBM (IBM)
International Business Machines (NYSE:IBM) reported earnings after the close. The stock broke $143 and the 10-week moving average a few weeks ago, but it was holding the 21-week moving average as support.
However, that level is now failing as support (for the moment) with Monday’s gap-down open. It’s also losing the $137 level. So, what now?
On a post-earnings dip, I want to see the 10-month moving average hold as support, but that may be too tight of a leash. In that instance, we need to see the 50-week and 21-month moving averages hold as support.
On the upside, though, the more levels that IBM stock can reclaim, the better. Back over $143, and $150-plus is on the table.
Top Stock Trades for Tomorrow No. 3: Tractor Supply (TSCO)
Tractor Supply (NASDAQ:TSCO) reported earnings before the open on Monday, and moved lower as a result. However, buyers stepped in near the $172 mark and are bidding it back higher.
Now shares are reclaiming the 21-week moving average. Let’s see if TSCO stock can reclaim the 10-week moving average and fill the gap at $184.46. Back above $185, and $190 could be in play. Above $190, and the obvious $200 mark becomes viable.
On the downside, however, a break of the $172 mark and this week’s low could put the 10-month moving average in play, followed by the 50-week moving average. Keep it simple folks.
Top Trades for Tomorrow No. 4: Novavax (NVAX)
For Novavax (NASDAQ:NVAX), I wanted to zoom out to the monthly chart. As you’ll notice, the stock has had a volatile yet profitable run to the upside.
The stock has been holding $150, and more recently, holding the 10-month moving average. From here, I want to see if the stock can rotate over the June high at $229.50.
If it can, $240 resistance immediately comes into play, followed by the 61.8% retracement of the current range near $250. Above that, and a push toward $300 may be in the cards.
On the downside, keep an eye on the 10-month moving average. A close below it may put $150 back in play.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
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