5 Top Stock Trades for Tuesday: BAC, NFLX, ATVI, INTC

Shutterstock photo

InvestorPlace – Stock Market News, Stock Advice & Trading Tips

Worries over an inverting yield curve, a solid predictor of future recessions, caused investors to worry last week. However, they are having trouble pinning down whether it’s a natural function of the bond market or a circumstance of artificially low global rates and a Fed that’s been raising short-term rates. Let’s use that to lead into our top stock trades for Tuesday.

Top Stock Trades for Tomorrow #1: Bank of America

Bank of America (NYSE: BAC ) was hammered last week on these yield inversion worries . Right as the stock was breaking out beautifully over $29.50, shares tumbled back below resistance and cratered toward $28 support.

However, that level didn’t provide much help, as BAC quickly fell below $27 last week. After consolidating those losses, shares are showing some life now back above $28.50 and BAC is looking much better.

It’s not out of the woods yet, though. Bulls need to see $28 hold as support. Preferably, it can move higher and close above the 50-day moving average later this week. But limiting our risk is key and that means holding $28. If that fails, $27.50 and last week’s lows are possible. If it holds, $29.50 resistance is back on the table.

Top Stock Trades for Tomorrow #2: Netflix

Netflix (NASDAQ: NFLX ) continues to slowly chop higher, putting in a series of higher lows and higher highs (purple arrows). $380 is proving to be a key level and should shares breakout over this mark, a run to $400 is possible.

Channel support and the 50-day moving average are key right now. A close below this mark puts a retest of the 200-day back on the table. Keep it simple.

Top Stock Trades for Tomorrow #3: Intel

This $54 to $55 level has been notable in the past for Intel (NASDAQ: INTC ). If Nvidia (NASDAQ: NVDA ), Advanced Micro Devices (NASDAQ: AMD ) and other chip makers can remain hot, bulls will certainly be looking for a breakout in INTC over this level.

If it does, it certainly puts the prior highs near $56 in play, while Intel has rather quietly been performing quite well. If resistance holds up, look for a buying opportunity near uptrend support/the 50-day moving average. More aggressive bulls can buy a test-and-hold of the 20-day moving average.

Top Stock Trades for Tomorrow #4: Activision Blizzard

Wedbush analysts named Activision Blizzard (NASDAQ: ATVI ) one of its best ideas on Monday, helping the stock to a 3% gain on the day. After hitting a low near $40 in February, shares have been steadily trending higher, putting in a series of higher lows.

It’s now above its 50-day and 20-day moving averages and a close over $48 could really ignite this name. If it can, $55 is a potential upside target, while a run to the 200-day could eventually be in the cards after some consolidation.

However, if this stock loses the $45 level and the 50-day, it could be in trouble. The decline below $40 didn’t pan out, but keep in mind, the 200-week moving average is up near $50 .

Top Stock Trades for Tomorrow #5: Tandem Diabetes Care

While the rest of the market is enjoying nice gains on the day, Tandem Diabetes Care (NASDAQ: TNDM ) is not. Shares are down almost 6% on Monday – and more losses could be on the way.

The late-February gap-up open came near $60 and this level has buoyed the stock several times since. However, the 20-day moving average is now acting as resistance, while uptrend support is down near $57.50. The downside targets then include the 50-day and the gap-fill down near $50.

In the short-term and on the long side, I need to see $50 hold as support and TNDM close above the 20-day to be interested in buying.

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

More From InvestorPlace

Compare Brokers

The post 5 Top Stock Trades for Tuesday: BAC, NFLX, ATVI, INTC appeared first on InvestorPlace .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Zeen is a next generation WordPress theme. It’s powerful, beautifully designed and comes with everything you need to engage your visitors and increase conversions.

Wealth Empire Newsletter
Register now for free updates and alerts

Subscribe By

Note: I have the ability to revoke this permission at any time and ask for the removal of my personal data collected by contacting us or simply clicking Unsubscribe.