4 Top Stock Trades for Tuesday: ROKU, TWLO, ZM, NIU thumbnail

4 Top Stock Trades for Tuesday: ROKU, TWLO, ZM, NIU

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Federal Reserve Chairman Jerome Powell was re-nominated this morning. The markets ran to new all-time highs on the news, but soon hit a bout of turbulence while growth stocks were pummeled. With all of that in mind, let’s look at the latter end of that group first for our top stock trades.

Top Stock Trades for Tomorrow No. 1: Roku (ROKU)

It looked algo-driven — at least to some degree — but the decimation in growth stocks was eye-opening today. The hope is that there was some capitulation within the group, but it’s not clear that we have the all-systems-go sign.

Roku (NASDAQ:ROKU) broke to new lows on the year, hitting $223-and-change. However, the stock is bouncing on the day and was in positive territory for parts of the afternoon.

Over $234.10, and bulls can be long Roku against this week’s low. On the upside, let’s see if we can get a rebound back to the 10-day moving average. A push through this measure puts the $269.29 gap-fill level in play.

On the downside, however, a break of $223.85 may trigger more stop-loss orders.

Top Stock Trades for Tomorrow No. 2: Twilio (TWLO)

Twilio (NYSE:TWLO) made a similar move, breaking below the bear-market low at $275.60 before catching a bid. The stock is now bouncing hard after reversing from today’s lows.

Unlike Roku, it has yet to turn green on the day. Like Roku, though, bulls may consider a long position in this name against this week’s low at $273.14.

If this group is going to bounce, it’s picking a good time of year to do so. Otherwise, more selling pressure could be in store. A rebound puts the 10-day moving average in play, followed by $300-plus.

Eventually, a push up to the gap-fill near $342 would be nice.

Top Stock Trades for Tomorrow No. 3: Zoom Video (ZM)

Zoom Video (NASDAQ:ZM) has not been trading all that well lately, but bulls are hoping that earnings will change that. Above is a weekly chart, illustrating how tough the trade has been.

The stock is coming into the 30-month moving average (roughly the 10-quarter moving average if you prefer), as well as the $240 support area from summer 2020.

What Zoom bulls really need is a close over the 10-week moving average and the $275 level. If it can do that, $300-plus could be in play, along with the declining 21-week moving average.

On the downside, though, a weekly close below $240 could put shares in no man’s land, meaning more languishing could be ahead.

Top Trades for Tomorrow No. 4: Niu Technologies (NIU)

While certain electric vehicle (EV) stocks were trading quite well on Monday, Niu Technologies (NASDAQ:NIU) was not among them. Shares gapped lower on the day and continued to lose momentum throughout the session.

The decline not only sent Niu below uptrend support, but also below the prior 2021 low at $21.08.

Back above this measure and bulls can be long against this week’s low — provided the rebound happens in the next day or two.

If this area is resistance or if Niu can reclaim it, the $18 support area may be in the cards. If you’re looking for relative strength in this space, this is certainly not the name to go with.

On the date of publication, Bret Kenwell held a long position in ROKU and TWLO. 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.