U.S. equities are quietly working on two-straight weeks of notable gains and progress on the long side, as stocks continue to stay above key levels following last week’s rally. With that in mind, here are a few top stock trades we’re watching now.
Top Stock Trades for Tomorrow No. 1: Apple (AAPL)
What else can we say about Apple (NASDAQ:AAPL) at this point? The stock held up pretty well in the correction and it’s now rallying in seven-straight sessions. What a beast.
Wednesday’s rally has sent the stock up through the 61.8% retracement, while it’s currently above all of its daily moving averages.
From here, let’s navigate it like this. Should Apple lose the 61.8% retracement, I want to see the 10-day and 21-day moving averages hold as support, along with the daily VWAP measure.
If Apple stock continues to push higher, keep an eye on the $176.50 area. That has been resistance this year and was close to the February high of $176.65.
Top Stock Trades for Tomorrow No. 2: Gold (GLD)
This morning, I noted the recent struggle in gold as it fails to reclaim its declining 10-day moving average. That’s evident in the SPDR Gold Trust ETF (NYSEARCA:GLD) too.
The problem is that gold is supposed to climb during inflationary environments, but short of a few squeezes and spurts, it’s had trouble maintaining momentum. Rising rates (and thus a stronger dollar) don’t help matters.
Once the GLD lost support, short-term momentum switched from the bulls’ favor to the bears’. However, there’s a clear support area to keep an eye on.
Currently, I’m watching for an undercut of last week’s low and a test into the fourth-quarter high and the 50-day moving average.
If we get that setup and support holds, I would consider it a buying opportunity. On the upside, though, a move over the 10-day and 21-day moving averages puts $183-plus in play.
Top Stock Trades for Tomorrow No. 3: Advanced Micro Devices (AMD)
Traders I have spoken to recently can’t stop pecking at Advanced Micro Devices (NASDAQ:AMD). They saw the powerful move in Nvidia (NASDAQ:NVDA) and are wondering if AMD can generate something similar.
AMD stock has done a great job breaking out of its downward channel (blue lines). However, it continues to struggle with the 50-day and 200-day moving averages. At the same time, it’s holding the 10-day and 21-day.
It’s a mixed picture and we need some resolution. A break of Wednesday’s low puts $110 in play and potentially lower if the sellers really lean into AMD stock. Maybe even near $100 in that scenario.
On the upside, a move over this week’s high near $118 could put the $124 to $125 area in play. More specifically, though, I’ll be watching to see if AMD stock can get to $129 to $132 area — the 21-week moving average and the 50% retracement.
Top Trades for Tomorrow No. 4: AMC Entertainment (AMC)
After a powerful two-day rally where AMC Entertainment (NYSE:AMC) gained more than 30%, the stock is now reclaiming a very key level.
Shares are back over the $20 mark, which was first a major high in January 2021, then a major breakout area in May 2021, support in December 2021, then resistance in 2022.
I know that’s a bit loaded, but it highlights how key this level has been. AMC stock is also back above the 10-day, 21-day and 50-day moving averages.
If long, I would consider trimming some of the position now, then some more near $24 to $25, which is the 21-week moving average. Above that could put downtrend resistance in play, followed by another big level near $33.
On the downside, however, a move back below $20 could put AMC’s cluster of daily moving averages back in play (the 10-day, 21-day and 50-day).
On the date of publication, Bret Kenwell held a long position in NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.