Tech remained under pressure on Thursday, as the Nasdaq lost about 1%, led lower by semiconductor stocks. Here are our top stock trades for Friday, starting with a big-time tech titan.
Top Stock Trades for Tomorrow #1: Alphabet
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Shares of search giant Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) were under pressure Thursday, falling 2.5% at one point. That adds to the recent losses in this FANG component.
It doesn’t help that regulatory worries are engulfing investors in names like Twitter (NASDAQ:TWTR) and Facebook (NASDAQ:FB).
On the chart, it’s clear that Alphabet has been slowly but surely trending higher. Unfortunately the break over $1,200 isn’t holding, although the lower end of that range is acting as support near $1,175.
If that doesn’t hold, uptrend support near $1,150 and the 100-day moving average should come into play at that point. Below that and I’d expect the 200-day to act as support too.
Last but not least, I’d expect support near that $1,075 area. Given GOOGL’s high quality business, I’d be a cautious, yet long-term buyer of the name. Short-term traders will want to see clear support come into play first. Thursday’s bounce off the lows is encouraging.
Top Stock Trades for Tomorrow #2: Micron
Micron (NASDAQ:MU) was hammered Thursday, to the tune of 8.8%. The move thrust the stock below support (blue line), but it’s still holding channel support (purple line).
Earlier this month though, MU stock rallied into its prior uptrend (black line) but found it as resistance. That’s not good. It’s also below all three major moving averages, the 50-day and 100-day of which are now trending lower.
Basically, Micron really just has channel support propping it up. Perhaps that will be enough to rally the stock ahead of its September 20th earnings report. Below and I’d be quite cautious on MU though.
Top Stock Trades for Tomorrow #3: Twitter
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Shares of Twitter also had a rough session, falling more than 5.5%. In fact, the entire social media space has been under pressure.
Earlier this year, this name could do no wrong. Now it seems, it can do nothing right.
If February, shares gapped up and over that $29.75 mark and ultimately rallied to almost $50. Now below all three major moving averages, TWTR is threatening to touch that gap-open level from February.
Aggressive bulls who are going long now, may want to use that as their stop-loss, particularly because it hasn’t been very good support in the past. Instead, $27 may be a better spot for conservative buyers to step into.
Top Stock Trades for Tomorrow #4: Facebook
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If we’re looking at Twitter, we might as well look at Facebook. Shares held up at $170, giving investors a low-risk buy in August that yielded nearly $20 per share within a few days.
FB put in a higher low later last month (shown via arrows) and was looking pretty promising. However, that trend broke quickly, as did $170 support. Now we find FB lost in no man’s land.
Maybe Thursday’s lows are the bottom and maybe it has more to go. We won’t know for a few more sessions, at the very least. On the upside, let’s see how FB handles the $170 area and whether it acts as support or resistance. On the downside, if Thursday’s lows give way, a retest of the $150 lows are in the cards.
Shorts may want to use a close over $170 as their stop-loss.
Top Stock Trades for Tomorrow #5: Wynn Resorts
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Falling below all three major moving averages and out of its recent downward channel, Wynn Resorts (NYSE:WYNN) does not look good.
I’m not sure where Wynn will bottom at this point. I know for starters I need Wynn to get back above channel support before I can consider it a long. But honestly, a rebound up to channel resistance and/or the 50-day moving average likely makes Wynn a sell.
That will remain true until the stock can breakout above this downward channel. If the drummings continue, a drop down to the $115 to $120 area is possible. For now, it’s a no-touch for me.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities.
