Top 3 stocks to trade on the stock market in 2024

While markets have shown increased volatility in recent weeks, the trend remains bullish on the stock market. In such a market context, trading offers the advantage of being able to generate short-term profits both up and down. Let’s analyze together our Top 3 most interesting stocks to trade in 2024 and examine the most important levels to watch to effectively trade these 3 stocks on the stock market.

Trading: how did Café de la Bourse choose these 3 stocks to trade on the stock market?

We chose Visa stock, LVMH stock, and Adobe stock because they represent the best balance of volatility, volume, and liquidity. These criteria are essential to trading because they directly affect the ability to enter and exit positions efficiently. Volatility provides profit opportunities, while volume and liquidity ensure that stock orders can be executed without significant spread between bid and ask prices.

In addition, these three shares on the stock market present particularly interesting technical configurations. Without going into details, as we will return to it later in the article, this means that their behavior in the market follows clear technical analysis patterns that can be more easily interpreted by stock market traders to make trading decisions effective.

The combination of these criteria makes these LVMH, Visa and Adobe shares a wise choice for short-term trading where speed and accuracy of transactions are paramount. Finally, the selection of 3 stocks from both the US and European markets allows you to cover the trading hours over a full day, giving maximum flexibility to take advantage of market movements at any time.

Also read our article How to invest in the stock market? Guidance 2024

Trading in Visa shares

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Visa shares are a preferred choice for trading due to several key factors. We can mention trading volume first because Visa stock has a high average trading volume with about 7.5 million shares traded daily, representing a daily volume of more than $2 billion. This high volume indicates strong liquidity, allowing traders to enter and exit positions easily without causing significant price fluctuations. In addition, the high liquidity of Visa shares ensures that orders are executed quickly and at prices close to market prices, as well as tight spreads.

See also our guide How to invest 10,000 euros in 2024?

Fundamental Analysis of Visa Stock

Visa stock is characterized by strong fundamentals and a robust financial position, giving it significant investment capacity. Visa has high pre-tax margins and its business is highly profitable. Visa’s net profit has grown almost continuously since 2015.

Also read our guide How to invest in the stock market with a securities account in 2024?

Visa net profit since 2015

Visa net profit 2015-2024

Source: TradingEconomics

However, be careful because the valuation of the Visa business is considered relatively high compared to the value of its tangible assets, and it pays little or no dividends, resulting in a low or zero return.

Also find our file How to do a fundamental analysis on the stock market

Technical analysis of Visa stock

From a technical perspective, the price reading on VISA shares is very clean. We can clearly see that the all-time high of $290 forms an important resistance level and that the $280 level forms a minor resistance to watch.

Traders looking to anticipate Visa shares to the upside can watch for a possible break of the first resistance at $280 with the aim of returning to the all-time high. If the $290 resistance were to give way as well, it would be a strong signal of a rally towards still unknown price levels. Note that the round number of $300 will definitely form the next resistance level.

The advantage of trading is also being able to profit from a share’s decline. In our case, with Visa stock, the best thing to do would be to either wait for the price to climb to the $280 resistance to anticipate a return towards $270 in case of a failed breakout, or if the market were to go straight towards declined, wait for a break of the $265 support to target a sharp decline in Visa stock to the next support level of $245.

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Graphical analysis of the VISA share on the stock market

Technical analysis of the visa effort June 2024

Source: ProRealTime Web

Also read our file Graphical and technical analysis: how to use it in the stock market?

Trade LVMH shares

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LVMH shares, the French flagship of the CAC 40 and the undisputed luxury giant, stand out as a choice alternative to Visa shares for traders operating on French schedules. With a daily trading volume of several million shares, LVMH offers remarkable liquidity, which is essential for short-term trading operations.

Unlike Visa shares, whose trading hours are in the US market, LVMH shares allow traders to take full advantage of trading hours in the European market.

It is important to note that the alternative proposed by the LVMH stock is not thematic because we are not comparing the luxury sector with financial services; but it is an alternative choice which is based on technical characteristics such as the robustness of LVMH in terms of volumes, liquidity and spread.

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Fundamental analysis of LVMH shares

After a difficult period in 2020, LVMH shares showed solid financial results, especially for the year 2023. The LVMH group’s net profit reaches heights never seen before. LVMH’s profit growth from 2021 to 2023 was impressive.

Also read our Top 15 French shares with the best dividend 2024

LVMH net profit since 2014

LVMH net profit 2014-2024

Source: TradingEconomics

To ensure growth in the future, the LVMH group invests in innovation and sustainable development to guarantee growth and its ability to adapt to changes in the luxury market.

While competition is fierce in the luxury sector, LVMH is making great efforts to strengthen its leadership by integrating digital technologies to enrich the customer experience and optimize its value chain. This is a strategic approach, which is complemented by a policy of targeted acquisitions, the purpose of which is to integrate new brands into the group’s portfolio.

Also discover our article 3 promising stocks in the stock market for 2024

Technical analysis of LVMH shares

Once again, technical analysis gives us several indications for implementing both bullish and bearish trading strategies.

To anticipate the rise in LVMH shares, wait for a return to the EUR 720 support level before attempting a buy. In the event of a rebound from this support level, it would be relevant to aim for a price target of EUR 790, which represents a major resistance level for LVMH shares.

However, it is possible that a return to EUR 720 will never happen, in which case buyers will have to wait for a break of the resistance at EUR 790 to try to reach the high of LVMH shares at EUR 880.

As part of a bearish scenario, we should monitor the break of the support at EUR 720 and set a target for LVMH stock around the next support zone of EUR 640.

It will be possible to try to “short” LVMH stock if the stock rises to EUR 790 without succeeding in breaking the resistance. The goal will then be a return of LVMH shares to the EUR 720 support.

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Graphical analysis of LVMH shares on the stock market

Technical analysis of LVMH shares June 2024

Source: ProRealTime Web

Also read our Top 8 most profitable French companies on the stock market in 2024

Trade Adobe stock

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Another possible option as an alternative to Visa shares, this time back in the US markets, Adobe shares present themselves as an attractive solution, offering trading opportunities thanks to good liquidity, but also interesting technical configurations.

Adobe has integrated AI (artificial intelligence) into its products, and the company is strengthening its positioning as an innovative company in step with current technological trends, which can make it an interesting choice, since artificial intelligence is playing an important role at the moment in the US markets .

See also our article 5 tips for investing in technology companies

Fundamental analysis of Adobe Stock

The famous creator of the PDF format recorded a profit of $23.9 billion in 2023, an increase of 11% over the previous year. These results are likely to continue to increase in the future, driven by increasing demand for Adobe products and services in an increasingly digital world.

While LVMH experienced a difficult time in 2020 during the Covid-19 crisis, Adobe, on the contrary, greatly benefited from the situation, probably due to remote work. Although results have since stabilized, they remain in significant growth.

Also read our Trackers and Stock Exchange ETF guide: guide to investing and selecting the best PEA ETFs in 2024

Adobe’s net profit since 2011

Adobe net profit 2011-2024

Source: TradingEconomics

Also discover our investment in the stock market file with growth management

Technical Analysis of Adobe Stock

Adobe stock prices are currently working in an important support zone at $440. In case of a validated breakout, it is very likely that Adobe stock prices will move towards the next support zone at $275.

The downside is therefore significant, but the support may hold, which would then be a signal to buy Adobe shares for a return to $500, or even $620 if the trend were to continue. You will have to be vigilant and not be fooled by any technical “false signal”.

In the event of a breakout of $440, traders who prefer not to short a stock can also wait for Adobe stock prices to fall to the support level to try to buy back to $275.

Freedom 24: wide selection of shares, ETFs and derivatives + up to 6.4%/year for deposits in euros*

*Your capital is subject to risk

Graphical analysis of Adobe shares on the stock market

Adobe Stock Technical Analysis June 2024

Source: ProRealTime Web

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Image source: Freepik

All of our information is generic in nature. They do not take into account your personal situation and in no way constitute personal recommendations for carrying out transactions and cannot be considered a financial investment advisory service or any incentive to buy or sell financial instruments. The reader is solely responsible for the use of the information provided, without recourse against the publisher of The responsibility for the publisher of can under no circumstances be assumed in the event of an error, omission or untimely investment.

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