The Dow Jones is jumping nicely on Thursday, but the S&P 500 is bumbling just above flat. You’ve got to give it to the bulls, they are doing a nice job of consolidating gains, even after short-term rallies. In light of that, it’s hard to get too bearish on the indices until they start to show some weakness.
Before we get to the charts, how about the breakdown in Tesla (NASDAQ:TSLA) and the strength in Alibaba (NYSE:BABA) Thursday? We won’t cover them today, as the trades were outlined ahead of time on Wednesday.
Top Stock Trades for Tomorrow #1: Constellation Brands
What a pump-fake we got in the beginning of the year. STZ stock gapped way lower and was grinding out new 52-week lows, only to pop back with a vengeance in the next session. It was a volatile run for a relatively stable company.
Fast-forward to April 4th and we’re sitting just over $190. In getting over this level, STZ has hurdled the 50% retracement for the 52-week range. That said, it has to contend with a technically overbought condition and the 200-day moving average just above.
If STZ can gain some upside momentum off this report, a move to $200 wouldn’t be surprising. Not only is it a nice round number and a notable level from earlier this year, it’s also the 61.8% Fibonacci retracement. On the downside, I’d hate to see STZ fall below $180 and give up these nice post-earnings gains.
Top Stock Trades for Tomorrow #2: Roku
Roku (NASDAQ:ROKU) took a beating on Thursday, falling 6% but down much worse at one point in the session. The move puts in a lower high on the daily chart, a bearish technical development.
That’s not a nail in the coffin, but rather something to take note of. It would be concerning to see ROKU lose the 50-day moving average and the $60 level though. If this level fails, we’ll need to see shares reset again before trying to trade it.
If it holds as support, see how it does with a retest of downtrend resistance (blue line).
Top Stock Trades for Tomorrow #3: Boeing
Shares of Boeing (NYSE:BA) continue to trade in a constructive manner as news about the 737 MAX continues to hit the wires. On its first day after the news broke, shares rallied back to $400, only to get buried in the ensuing sessions.
The ~$365 level has held like a champ though and shares are now trying to get back over the 50-day moving average. If this level gives way and BA climbs above $400, look for a gap fill back up toward $420.
Should it fail, look to see if the 20-day can support it. If not, a retest of that $365 to $370 level is likely on deck.
Top Stock Trades for Tomorrow #4: Exxon Mobil
If this stock loses the 20-day moving average and/or uptrend support, it may need to reset. More lenient bulls can watch $80 rather than the 20-day to see if XOM needs a reset.
Top Stock Trades for Tomorrow #5: Disney
Shares of Disney (NYSE:DIS) continue to trade higher as its studio division is doing better than expected and over optimism with its Disney+ platform.
The stock pulled back last week and held the backside of long-term downtrend resistance. This is a name we’ve liked as an investment given all of its catalysts for the year. However, it would be more attractive if the stock were to maintain its recent momentum. In this case, it needs to clear this $115 to $116 level.
Investors can buy dips down into the $107 to $110 range for now.