Thursday started off as a boring, choppy session and it ended that way too. In all honesty, it was probably the best thing bulls could have asked for. Extending much higher could cause stocks to become overbought in the short term. So they need to digest through price or through time and, with today’s action anyway, it’s choosing the latter. That doesn’t mean there weren’t big movers though. Let’s look at some top stock trades.
Top Stock Trades for Tomorrow #1: Cloudera
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Disappointing earnings results from Cloudera (NYSE:CLDR) sent the stock spiraling, down almost 18% on the day. The move thrust CLDR below all of its major moving averages and through all notable levels of support.
Shares are now in no man’s land in my eyes, and we’ll need to see how the next few days shape up before touching this one. Should the selling persist or CLDR find itself in a downtrend, $10.50-ish could be the eventual target on the downside.
Unfortunately, there are way too many cloud stocks that are doing well to want to be in this one.
Top Stock Trades for Tomorrow #2: Snap
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An upgrade to buy from BTIG sent shares of Snap (NYSE:SNAP) higher by 11% on Thursday. Save for a few long trades, I’ve never been a big fan of Snap stock. But over $10.50 and this name is looking much healthier.
Below $10.50 and bulls should limit their risk with this one, but over this mark and more upside seems possible. Particularly with a near-14% short interest in this name, a squeeze could propel Snap stock higher. As far as upside targets go, I’d watch for $12 and $12.80, respectively.
Top Stock Trades for Tomorrow #3: Bank of America
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The other day, I posted several bank stock charts to my Twitter account and with the sector acting well, I’d like to cover them in more depth here. This has been a choppy market, full of sector rotation. If banks gather some momentum, it could trigger a number of breakouts in the group.
Starting with Bank of America (NYSE:BAC), shares have been bouncing between $28 support and $29.50 resistance. Now above all of its major moving averages, not yet overbought and with an MACD swinging in bulls’ favor, a rally could be in store. BAC needs to push over $29.50 with authority and if it can, a rally into the low-$30s is possible.
Keep in mind though, this has been a tricky market with slow moves and tricky fake outs.
Top Stock Trades for Tomorrow #4: Goldman Sachs
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Goldman Sachs (NYSE:GS) has a similar setup, chopping between $190 and $200 since mid-January.
If we can get a a close over $200, it could accelerate a rally up to the 200-day at $210. Below $190 is trouble. Keep it simple.
Top Stock Trades for Tomorrow #5: JPMorgan
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JPMorgan (NYSE:JPM) doesn’t have the same setup as BAC or GS, but nonetheless is deserving of some attention. Trending higher and over downtrend resistance (blue line), this name is struggling to breach $106. More so, the 200-day is just overhead at $106.93.
If we can get a breakout over this area that sticks, a rally to $112 doesn’t seem too aggressive. This has been a notable level over the past 12 months. On the downside, a close below uptrend support and/or the 50-day moving average would be a concern.
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.
