Shares had been offered on the open on Monday, beginning off the week on the fallacious foot. Can the market get well or does it want extra time to consolidate? That stated, let’s take a look at just a few prime inventory trades.
High Inventory Trades for Tomorrow No. 1: S&P 500 ETF (SPY)
So what’s happening out there? Nicely, let’s take a look at the SPDR S&P 500 Belief ETF (NYSEARCA:SPY) to get a greater concept.
Shares traded down into the two-times weekly low close to $386 and the 21-day shifting common. To this point, bulls are shopping for the dip, however they’re not doing so robustly. That is additionally the breakout spot from the January highs.
The SPY has traded effectively this 12 months, nevertheless it may very well be getting drained after a lot upside and so little draw back follow-through.
Ought to it break $386 and the 21-day shifting common, the 50-day shifting common will likely be in play. Under that places the January low on the desk close to $368, in addition to the 100-day shifting common.
On the upside, although, bulls must reclaim the 10-day shifting common, placing the present all-time excessive in play at $394.17, adopted by $400. To this point, issues appear routine. We lack giant draw back quantity days and big spikes within the volatility index. Panic isn’t within the air, not but anyway.
High Inventory Trades for Tomorrow No. 2: Disney (DIS)
Disney (NYSE:DIS) reported nice earnings and hit new highs on the print, however pale from these ranges virtually instantly.
It took a little bit greater than per week to shake out, however the inventory is now discovering its footing. From right here, I need to see a rotation over the post-earnings excessive at $193.85.
Above that can put the 161.8% extension of the bigger vary in play close to $199, and thus, it’ll put $200 on the desk as effectively.
On the draw back, nevertheless, I need to see the 10-day shifting common maintain as assist. Under places the 21-day shifting common on the desk, adopted by that four-day post-earnings low within the low $180s. I would like to see this space maintain as assist. If it doesn’t, we’ll must re-evaluate.
High Inventory Trades for Tomorrow No. 3: Spotify (SPOT)
Spotify (NYSE:SPOT) has gone from one to vary to the following, nevertheless it’s making an attempt to interrupt out as we communicate.
Final week, Spotify was constructing simply above resistance at $350, then fired increased on Monday. To this point, the two-times extensions from each the short- and long-term vary are appearing as resistance, (with SPOT hitting the short-term two-times extension virtually to the penny).
This inventory has traded the latest vary extensions fairly technically (drawn in blue). From right here, l need to see Spotify shut over the prior excessive and 161.8% extension close to $372.
Above retains this week’s excessive in play close to $387. Above that places the $400 mark and 261.8% extension on the desk.
On a dip, although, see that the 10-day shifting common holds as assist. Under may put the $340 space on the desk.
High Inventory Trades for Tomorrow No. 4: Dish (DISH)
After getting hammered within the first quarter of 2020, Dish Networks (NASDAQ:DISH) has been rangebound. The inventory has spent most of its time bouncing between $27 and $37.
Late final week, Dish burst over the January excessive and 61.8% retracement. Now, the latter is appearing as assist together with the 10-day shifting common.
This isn’t the end-all, be-all degree. Nevertheless, that near-$32.90 space is a short-term line within the sand. Under it’ll put its cluster of main shifting averages in mess around $31.
Over final week’s excessive (at $34.81) and maybe we will see a transfer up towards $37 resistance. That’s the large degree to observe, because it has stored a lid on Dish for months now. Over $37.50 may put $40 in play, adopted by the excessive at $42.62.
On the date of publication, Bret Kenwell didn’t have (both straight or not directly) any positions in any of the securities talked about on this article.