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Stocks continued their recent momentum from Monday, again rallying higher on Tuesday. Companies like Boeing (NYSE: BA ) remain on shaky ground, while plenty of other big movers drew our attention. Let's look at some top stock trades for Wednesday.
Top Stock Trades for Tomorrow #1: Stitch Fix
Shares of Stitch Fix (NASDAQ: SFIX ) are ripping on Tuesday, up more than 25% after better-than-expected earnings . It's hard to be disappointed with a move like that, but given how far off its highs this one finished and it does cause some concern.
There's a big short interest in this one, so it's totally possible it starts to scream higher on Wednesday. If it loses Tuesday's lows though, a drop down to $32 is likely. Over this $34.50-ish area - which has been notable but is also the 50% retracement mark for the 52-week range - and SFIX could retest Tuesday's high.
Above it and a short-squeeze could fuel it higher to fill that gap up near $44.
Top Stock Trades for Tomorrow #2: Momo
Up more than 12% on Tuesday post-earnings and Momo (NASDAQ: MOMO ) is no slouch either. However, like SFIX we could have seen a stronger finish to the day.
MOMO couldn't stay above its 200-day moving average, but on the plus side, it's over the $34 to $35 range, a key area over the past year. Plus, it hurdled its 38.2% Fibonacci retracement level near $34.25. If it can continue higher, look for Momo to clear the 200-day and perhaps challenge $40.
On the downside, look to see that $34 to $35 holds as support.
Top Stock Trades for Tomorrow #3: Coupa Software
This one has had some strange moves lately, with Coupa Software (NASDAQ: COUP ) closing off the lows but ultimately lower by 3% on the day. Its earnings weren't able to break it out of the recent range, between $89 to $97. A close outside of this range likely creates a momentum trade in that direction.
Meaning, a close below range support sends it lower and a close above could cause a breakout. Let's wait until we have a more definitive direction rather than guess on which way it will go.
Top Stock Trades for Tomorrow #4: Dick's Sporting Goods
Dick's Sporting Goods (NYSE: DKS ) is crumbling on Tuesday, down 11% after disappointing investors with its earnings report .
While the 50-week moving average is stepping up as support (not shown on the daily chart above) at $34.58, this one is looking kind of ugly right here. The stock knifed right through all of its major daily moving averages and could have more downside left if the stock doesn't maintain Tuesday's lows. If the 61.8% Fibonacci doesn't supports the stock near $34, this one could sink to $32.50.
On a rally, look to see whether DKS can push through its moving averages or if this level acts as resistance. For now, more downside is the risk.
Top Stock Trades for Tomorrow #5: Visa
Making new 52-week highs on the day is Visa (NYSE: V ). This silent winner was able to push over a key level at $150. Now bulls have to make sure it stays above this mark. A dip and hold to $150 is a great buying opportunity in this sense.
Below this mark and uptrend support and/or the 21-day moving average becomes the next buy-the-dip spot. If it fails, $142 to $144 is likely. Just remember to keep it simple.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell . As of this writing, Bret Kenwell is long V.
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