Despite the holiday-shortened trading week, the stock market has been pretty volatile to end the month of May. U.S. stocks are under pressure Thursday amid renewed concerns over a global trade war. With that in mind, there were some winners and some losers making our top stock trades list.
Top Stock Trades for Tomorrow #1: Box (BOX)
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Shares of Box Inc (NYSE:BOX) tanked about 9% despite beating on earnings per share and revenue estimates and providing guidance that was better than analysts’ estimates.
The pullback shouldn’t come as a surprise even with good numbers, as the stocks had a big rally from $18 in March to $28 this month.
I would have really loved to see Box retest the $24 level and show a violent rebound from there. Instead, it only got down to $24.50 before bouncing. At this point, it’s not clear if Thursday’s low is the short-term bottom or if it will ultimately retest $24. I happen to believe that BOX’s strong fundamentals and investors’ clear appetite for the stock will continue to drive it higher in 2018.
In that respect, traders willing to take a long-term view on it may find it best to nibble a position here in the low-$25s and add to it should it retest $24 and hold.
Top Stock Trades for Tomorrow #2: Facebook (FB)
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What an impressive rebound we’ve seen in Facebook, Inc. (NASDAQ:FB). After brutally dropping down to the lower $150s — where InvestorPlace regulars read they should buy FB — it’s quickly rebounded north of $190.
Previously, I thought there would be enough of a hangover to keep Facebook from making new highs anytime soon. Alas, that was wrong.
Up near $192 and there’s not a lot of wiggle room for traders at the moment. Bulls can target the previous highs near $195 and if it continues higher look for a run to $200. If momentum wanes and FB pulls back, look for support in the mid-$180s. If it holds, FB stock is a buy.
Top Stock Trades for Tomorrow #3: Micron (MU)
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Micron Technology, Inc. (NASDAQ:MU) is one of the most popular trading vehicles, in part because it makes such big moves. Thursday’s development? A double top.
Honestly a pullback all the way down to trend-line support near $48 isn’t off the table, as MU made that exact move earlier this year. If bulls really are in control though, support between $54 and $56 will hold.
On a pullback to these levels, bulls can dip their toes in the water. If it holds, it should retest $60 and possibly its prior highs. For the brave bears, make sure to use a stop-loss just above that double-top. No need to stay short if MU wants to run to $70. Not at this valuation.
Top Stock Trades for Tomorrow #4: Alphabet (GOOGL)
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For its part, Alphabet Inc (NASDAQ:GOOGL) hasn’t been trading that well compared to its FANG counterparts. Thursday’s near-3% rally is trying to change that though, after GOOGL teamed up with Fiat Chrysler Automobiles (NYSE:FCAU) for some 65,000 vehicles.
The rally vaulted GOOGL over $1,095 resistance, as well as its 100-day moving average. It also popped out of a small descending channel. Should this move hold, bulls can target the most recent high at $1,120, then $1,150 where downward resistance could come into play.
Top Stock Trades for Tomorrow #5: General Motors (GM)
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It’s been a tech-filled write-up so far, so let’s throw it back with a good-ole American classic: General Motors Company (NYSE:GM).
GM shares skyrocketed Thursday, up 13% following a $2.25 billion investment from Softbank Corp/ADR (OTCMKTS:SFTBY) in its GM Cruise business.
The rally is huge for GM and puts it on a collision course to retest its highs near $45. The momentum-measuring MACD and relative strength index (blue circles) show that there’s more room to run too. With a low valuation and a plan for growth, GM could still have upside. A 3.6% dividend yield doesn’t hurt.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell was long GOOGL and BOX.
