Major U.S. indices are mostly flat on Wednesday, digesting the big rally they had on Tuesday. Since we remain in the thick of earnings season though, we’re seeing big moves in individual stocks too. Thursday will be busy with Tesla (NASDAQ:TSLA), Microsoft (NASDAQ:MSFT) and Facebook (NASDAQ:FB) all reporting on Wednesday after the closer. Let’s look at some of our top stock trades right now.
Top Stock Trades for Tomorrow #1: AT&T
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AT&T (NYSE:T) had been trading really well this year. Shares pushed back above $30 and were firmly in breakout territory after getting above downtrend resistance. While today’s post-earnings fall is discouraging, it’s perfect for investors.
T is currently below the 50-day, but has the 200-day just below at $30.34. Further, the 100-day moving average is down at $29.98. With prior downtrend resistance (blue line) coming into play near the same levels, this draws a pretty bold line in the sand down near $30.
Below this mark and T stock will again need to reset before trading it on the long side. However, that sets up a great risk/reward for bulls interested in T and its 6.36% dividend yield.
Top Stock Trades for Tomorrow #2: iRobot
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Shares of iRobot (NASDAQ:IRBT) are being vacuumed up, with shares getting smacked down by more than 20% after reporting earnings.
$130 was clear resistance, $115 failed as support and that brings up the 200-day and the $95 level. The 200-day has been a buoy over the past year, but that’s not to say IRBT hasn’t broken below it over that timeframe too. A break below the 200-day but a hold of $95 would have me interested on the long side.
Let’s see how it shakes out over the course of this week.
Top Stock Trades for Tomorrow #3: Intel
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Intel (NASDAQ:INTC) reports earnings on Thursday after the close and this name has been red hot. We flagged it earlier this month as a potential breakout candidate and those traders may consider locking in some gains ahead of the print.
Why? As much as I like seeing INTC consolidating near $59, shares remain overbought and the risk/reward is simply not screamingly attractive. I would love a pullback on solid earnings into this $56 to $57 level. Will we get it? I don’t know.
But I don’t think it’s the last time we see INTC this cheap. I want to see how it does on an eventual pullback into prior resistance.
Top Stock Trades for Tomorrow #4: Ford
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Ford (NYSE:F) is flirtatiously hanging around a big breakout level. Like Intel, it too will report on Thursday. The stock continues to trend higher as the $9.50 level looms large.
A breakout over this level could unleash a fury of bullish momentum. Should F disappoint though, it’s vital that $8.75 holds as support. It’s a key level and a conflux of the 50-day and 200-day moving average.
Top Stock Trades for Tomorrow #5: United Technologies
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Honeywell (NYSE:HON) was a sweet mover on earnings, but so far, United Technologies (NYSE:UTX) is giving us the same upside “oomph.” The company posted a top- and bottom-line earnings beat and managed to climb 2% on Tuesday, but shares are about flat on Wednesday.
The $142.50 level is clear resistance, so a breakout over that level is something to watch. However, UTX’s hesitancy to do so is also worth observation. A pullback into $135 wouldn’t be a bad risk/reward for interested bulls should a breakout fail to take hold.
Those are the levels to watch now: $142.50 on the upside and $135 to $136 on the downside. Should UTX chop around, look to see if uptrend support can push it higher down the road.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long T.
