A better-than-expected jobs report has stocks gravitating higher on Friday, as the S&P 500 continues to go higher. Let’s see how our top stock trades are setting up after another broad market rally.
Top Stock Trades for Tomorrow #1: Spotify
SPOT is not only holding the 20-day and 50-day moving averages, but is also holding its breakout point over short-term downtrend resistance. Bulls have a low-risk entry at this point, with a potential $10 move up to the February highs and the 200-day moving average.
Top Stock Trades for Tomorrow #2: Occidental Petroleum
Depending on how one draws their trendlines, Occidental Petroleum (NYSE:OXY) is either breaking out or almost breaking out of its recent range.
A reasonable target for OXY? The 200-day moving and the $73 to $74 level. On the downside, a close back below $67 puts OXY back in its prior range, although the 50-day has been solid support.
Top Stock Trades for Tomorrow #3: Invitae
Invitae (NASDAQ:NVTA) has become a fascination among traders, as the high-flyer continues to make wild moves. Even though it was up 7% at one point on Friday, there was talk about an even further rally to new highs north of $26.
With the intraday pullback, that didn’t really work out for NVTA, but the bulls are still doing okay. Shares continue to grind up this 20-day moving average, with Invitae continually pulling back off $25 resistance.
Short of a market-wide correction, this sets up the thesis of, “the more times a level is tested, the more likely it is to break.” We said any pullbacks into this $20 to $21 area will be bought up and that’s panned out thus far.
So what now? Bulls can keep riding this momentum along the 20-day and look for a breakout over $25. Over $26 and this thing could really fly. Below uptrend support, the 20-day and $21, and we’ll need to re-evaluate.
Top Stock Trades for Tomorrow #4: JD.com
It’s knocking on $32 and wants higher. Should it get over this mark, it could run up toward $35. It might be too greedy to ask for another pullback, given that investors could have nabbed this one below $30 just a few days ago. However, keep an eye on $32. If shares push through it, see if $32 acts as support. That’s a great buying chance, as would a pullback into the $29 area.
Top Stock Trades for Tomorrow #5: Starbucks
Starbucks (NASDAQ:SBUX) has been an absolute beast. It was up in the fourth quarter and has continued higher in Q1 too. Not many names can say that, as SBUX is now up more than 56% from its summer lows.
With this strong of a trend, it’s hard to be a seller, even after such a big move. Shares are knocking on $75, wanting to push up. If they rally this into earnings later this month, it’s hard to imagine much upside being left. That said, pullbacks into the 20-day are safe buying opportunities for now.
See that SBUX stays above $72.