We’re finally seeing U.S. stocks cool off a bit after a miraculous run over the past few week or so. One would think that the bears could undo some of these gains here. The fact that they can’t says it’s more likely buyers are taking a rest right now rather than sellers taking control. That can always change — sometimes just from a tweet — but for now, we have to respect that observation. Let’s look at some top stock trades going forward.
Top Stock Trades for Tomorrow #1: Facebook
The stock was rejected from its 50-day moving average and is failing to hold its 20-day moving average. It’s no surprise that downtrend resistance (blue line) is also squeezing it lower.
Let’s see where it firms up. If buyers come in to defend FB, $175 may hold. If not, a decline down to the $160-ish level may be in the cards. On the upside, bulls really need to see FB clear downtrend resistance and the 20-day moving average. That puts the 50-day and potentially higher back on the table.
Top Stock Trades for Tomorrow #2: General Electric
Look at General Electric (NYSE:GE) quietly trying to breakout. The stock pushed through a convergence of moving averages near $9.75 and is now well north of $10.
Bulls need to see the stock hold above its three major moving averages. So long as that’s the case, a breakout over $10.50 is in the cards. If it does, the February high near $11.28 is the first target.
If $10.50 holds as resistance, bulls need to see its trifecta of moving averages hold as support. Otherwise, $9.50 and potentially $9 are on the table.
Top Stock Trades for Tomorrow #3: The Trade Desk
The Trade Desk (NASDAQ:TTD) took a quick 6% hit on Wednesday on an analyst note, but recovered half of those losses by the close. It’s left the stock bouncing off its 10-day moving average, but is otherwise just floating there. Where resistance came into play is no surprise.
A close below Wednesday’s low could get us a flush in TTD. Maybe only down to the 20-day moving average, but perhaps down to the 50-day moving average.
I would love to see TTD back down in that $190 to $200 consolidation zone, but after a $50 rip in a week, I don’t know if it will decline that far, (short of a broader market correction).
If it does, I would consider it a buying opportunity. Otherwise, see how it trades through the rest of the week. If today’s lows hold, a retest of its highs and channel resistance are in the cards.
Top Stock Trades for Tomorrow #4: Alteryx
Alteryx (NYSE:AYX) is ripping higher on Wednesday, with the stock up 10%. Along with TTD, these two stocks have been total studs and the gains shouldn’t surprise InvestorPlace readers. After all, they are two of the seven mid-cap stocks to buy for big-time returns.
So what now? AYX continues to bumble along against channel resistance, a mark that’s been in place since the fourth quarter.
Can AYX breakout over it? Of course, but I wouldn’t bet on it happening. I’d rather potentially play the breakout after the fact than gamble on multi-month resistance suddenly giving way. However, I would certainly be a buyer on a pullback into the $87 to $92 area. Aggressive bulls may pull the trigger at $95 to $96.
Top Stock Trades for Tomorrow #5: Adobe Systems
Adobe Systems (NASDAQ:ADBE) reports earnings on June 18th. Usually we see some upside action ahead of the report as optimism grows. It’s no secret this name has been a huge winner over the years, so optimism ahead of the print is not surprising.
Above, you can see that the 50-day moving average is holding up, as is the backside of short-term downtrend resistance. That said, $285 has been a ceiling to ADBE while it has made three straight lower highs.
I don’t know how the stock will trade post-earnings, but as long as it holds today’s lows, it could be good for a bounce in the coming days.