4 Top Stock Trades for Thursday Morning

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stock trades - 4 Top Stock Trades for Thursday Morning

The Paul Manafort and Michael Cohen news out of Washington sent a politically charged jolt into the stock market on Wednesday.

Traders have handled the news pretty well, with equities getting back to flat in the session. Individually, we had a few big movers in retail … which leads our top stock trades to make first thing Thursday morning:

Top Stock Trades for Tomorrow #1: Target

top stock trades for TGT
Click to Enlarge
Source: Chart courtesy of StockCharts.com

The dashed line on the chart above could act as support, a level aggressive bulls can consider going long at.

Some investors will be hesitant to buy after such a big rally, particularly with shares approaching a short-term overbought condition (blue circle). For more conservative bulls, they can consider buying near $84 to $85, TGT’s breakout level and prior resistance.

Finally, uptrend support in the low $80s and the 20-day moving average could prove a viable level to buy at if it gets there.

The bottom line: We want to buy pullbacks in strong stocks and going into the second half, Target is one of them.

Top Stock Trades for Tomorrow #2: Lowe’s

top stock trades for LOW
Click to Enlarge
Source: Chart courtesy of StockCharts.com

Shares shot up to new highs and are now pulling back. So where can investors buy?

Lowe’s broke out over $102 on Wednesday, so a pullback to this area would represent a solid buying opportunity.

For more aggressive traders, they can contemplate buying should LOW close above its prior highs at $108.

Top Stock Trades for Tomorrow #3: Nvidia

 

top stock trades for NVDA
Click to Enlarge
Source: Chart courtesy of StockCharts.com

Good thing InvestorPlace readers were prepared. We told investors ahead of its earnings report that the first dip they may want to consider buying would be down in the low $240s. Shares sank to a low of about $239 before reversing and closing near $247 in a single session on Monday. By Wednesday, shares were over $260.

So what now? Over the $250 to $255 level, bulls should feel confident about more upside. The dashed line near $263 could play a role in short-term resistance. Maybe we’re getting too cute with that mark, but if it contains NVDA, look for a potential pullback into the mid-$250s.

If that holds as support, bulls can stay long and look for an eventual breakout to the $265 to $270 area and possibly high er.

Top Stock Trades for Tomorrow #4: General Electric

top stock trades for GE
Click to Enlarge
Source: Chart courtesy of StockCharts.com

For long-term investors, they may find some attractive qualities to GE, even if we’re already back to a near-5% dividend yield less than a year after halving the dividend.

Earlier this month, GE broke below its prior lows near $12.60. While that’s bad, the recent price action makes for an even more concerning situation. After bottoming in the $12.20’s, GE is having trouble getting back above prior support.

That tells investors that more downside could be in the cards. This thing has been a falling knife and cut more investors than we can keep count of at this point.

I wouldn’t consider buying GE until it can get above prior support near $12.60, and at this rate, above downtrend resistance as well. That will also require a move over the 20-day and 50-day moving averages.

In a case like GE, caution over “taking a shot” is a worthwhile exercise. Our strategy is not a surefire way to profit, but it at least puts the odds more in our favor.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long NVDA.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.


Article printed from InvestorPlace Media, https://investorplace.com/2018/08/4-top-stock-trades-for-thursday-low-tgt-nvda-ge/.

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