It was another sleepy day for the major indices, but not a quiet day with individual stocks. We saw some massive moves in the market following earnings, so let’s get started and see some top stock trades for Friday.
Keep an eye on Realty Income (NYSE:O) as it bounces off trend support into potential moving average resistance, as well as Johnson & Johnson (NYSE:JNJ). JNJ put in another higher low on the chart, increasing the odds of a breakout over $140.
Finally, Ford (NYSE:F) and Intel (NASDAQ:INTC) report earnings tonight, two trades we laid out on Wednesday.
Top Stock Trades for Tomorrow #1: Facebook
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Shares of Facebook (NASDAQ:FB) are popping on Thursday, up 6.4% after the company impressed with its earnings results. After consolidating over $180 for the past few weeks, FB stock is on the move once again.
It pushed through that important $185 to $190 zone, the former of which also sports the 61.8% Fibonacci retracement for the 52-week range. Shares backed off $200, as profit takers unloaded a bit after the big rally this year.
Now what?
I want to see FB stock hold this $185 to $190 area as support now. Ideally, FB would give us a pullback into this area, allowing its moving averages to catch up a bit and consolidate some of this move. If it holds, it increases the odds of a move back over $200. That said, the bullish momentum could continue with a pullback too.
Top Stock Trades for Tomorrow #2: 3M Co
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Not making such a healthy move on Thursday is 3M Co (NYSE:MMM). Disappointing earnings results drilled the stock to the tune of 13%.
Will support buoy the stock and keep it from more losses? $190-ish has played a role in the past and $192 also has the 61.8% Fibonacci retracement for the 52-week range, so it’s certainly possible.
That said, $180 had to make a stand twice in the fourth quarter. With the 200-week at $182 and with a quarter like this, I wouldn’t be surprised to see some more selling before buyers make a big stand. See how it handles $190 to $192-ish on Friday.
Top Stock Trades for Tomorrow #3: Altria
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Altria (NYSE:MO) is also getting drilled on earnings, down 6% on the day.
The stock has been making a series of lower highs and the 200-week moving average acted as resistance over the past few weeks. That doesn’t bode well for intermediate term bulls out there.
MO is now below all three major moving averages on the weekly chart, with no real support coming into play until $48. It’s possible it finds a bottom and reverses before that point, but shares look unattractive until $52. Unless it reclaims $52, MO is in no man’s land. If it does recover, see how it handles the 20-week and 50-week moving averages near $54.
Top Stock Trades for Tomorrow #4: Comcast
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Comcast (NASDAQ:CMCSA) was a winner on Thursday, rallying 3% on its quarterly earnings results.
It cleared $40 a few weeks ago and this week’s gains only add to bulls’ recent optimism. A potential deal with Disney (NYSE:DIS) over Comcast’s stake in Hulu could be a win-win for both companies too.
This week’s low came right at the stock’s prior weekly closing high in January 2018. A grind up past $44 — near the stock’s highs — is definitely possible. CMCSA would look interesting on a pullback though, especially down into this week’s lows near $42.
It’s where the 10-week moving average and uptrend support come into play too.
Top Stock Trades for Tomorrow #5: Tesla
Tesla (NASDAQ:TSLA) stock did not decline the way many bears were hoping on Thursday. That’s despite the automaker missing on earnings and revenue expectations. In any regard, the stock is showing signs of a breakdown.
Shares have been building a base under the 200-week moving average and remain in a steep downtrend. Below the $242 area and TSLA will be making multi-year lows.
From the long side, this one does not look tempting. For that to change, it needs to hold this area and get back above its 200-week moving average. On top of that, it needs to clear downtrend resistance. If it doesn’t, a flush lower is more than possible.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long JNJ.
