U.S. stocks look like they’ll eke out some gains on Thursday as equities continue to quietly grind higher. But just because the major indices barely churned out gains, doesn’t mean there was a lack of big movers during the day. Two 20% jumps highlight our top stock trades for tomorrow.
Top Stock Trades for Tomorrow #1: Roku
What a killer earnings result it was from Roku (NASDAQ:ROKU) and investors are having no reservations about bidding it up in response. We outlined the trade the other day, but its 20% rally is too hard to ignore for a second straight day.
Now rallying right into its prior high, keep an eye on Roku. A close over this mark gives investors a solid risk/reward if they want to go long. Shares opened near $52 — a level we were watching from our preview — and have been strong since.
A pullback to this mark would be a buy, buy, buy!
Top Stock Trades for Tomorrow #2: Yelp
Like ROKU though, Yelp could be running into trouble. Over $50 and it looks good for more upside. ROKU may have trouble getting up and through that mark though, given the significance of this $48 to $50 area and the backside of its previous uptrend.
That said, a 30% rally is no small sneeze and as the blue circles highlight on the chart, Yelp is putting in a series of higher lows.
I would feel better about Yelp on a pullback — perhaps to the $42.50 to $45 area — or on a breakout-and-consolidate over $50.
Top Stock Trades for Tomorrow #3: Tesla
Can Tesla (NASDAQ:TSLA) stay out of the news for more than a day? After earnings last week, shares were surging. Then earlier this week, Musk said he wants to take the company private and has “funding secured.”
If that’s not true, the man’s in trouble. If it is, shares could be heading to his $420 takeout price and possibly higher on the back of a short squeeze.
So how do we play it? Remember that observing a name like Tesla is just fine, we don’t have to be long or short. That said, Tesla doesn’t have the best financials and is now below the key $360 level, a mark we’ve been highlighting for months.
Notice also that just below $390, Tesla has again put in a high. While it seems like the coast was clear for Tesla given that Q3 and Q4 will likely show GAAP profitability, the go-private tweet rally threw things off.
I would feel better about Tesla if it were above $360, but it absolutely must stay above this $315 to $330 area.
Top Stock Trades for Tomorrow #4: Celgene
Celgene (NASDAQ:CELG) has a low valuation and solid growth. But it’s also been on a big rally.
I like CELG longer term (and own a bit of it for that reason). However, with possible resistance near $97.50 and coming right into the 200-day, short-term bulls may want to consider taking profit.
The RSI says shares are nearing overbought territory too (blue circle).
Top Stock Trades for Tomorrow #5: BlackBerry
BlackBerry (NYSE:BB) has been trading well lately, but know your levels.
Now near $10.50, the 50-day of $10.70 looms just above, with its 100-day a little higher at $10.97. Near $11 is the backside of its prior uptrend, while its viscous downtrend is near $11.50. In between those two marks is the 200-day.
So what does all of this mean? Assuming BB can get through the 50-day, just know there’s a lot of resistance between $11 and $11.50. Should it fail, BB could be heading back to $9.50. Above and the coast is clear.