It was Fed day on Wednesday, with the Federal Reserve saying that it is not raising rates but that it will act appropriately if the data warrants it. Essentially, it is willing to be accommodative, which is reassuring to investors, provided Fed Chair Powell doesn’t say something hawkish in his press release. Let’s look at some top stock trades in light of today’s move.
Top Stock Trades for Tomorrow #1: Uber
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It might be. Uber poked its head above the $45 IPO price, but retreated shortly after. Over this mark and investors will surely be looking for upside. However, they’ll want to see a run higher over $45.70, where it has continually been met with sellers throughout this month.
But you know what they say: the more times a level is tested, the more likely it is to give way. With a series of higher lows pressuring UBER higher, I’m looking for this one to eventually breakout over $45.
Top Stock Trades for Tomorrow #2: Jabil
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Shares of Jabil (NYSE:JBL) are slowly but surely grinding higher on Wednesday after better-than-expected earnings results. After finding the 200-week moving average as support a few weeks ago, shares quickly vaulted above the 20-week and 50-week moving averages as well.
It sets up a big test of $31, which has been range resistance for two years now. Should it act as resistance again, a pullback will likely get underway. If it gives way though, it could ignite a potent rally over this mark.
Watch $31 to $31.40. Over this area and JBL stock could fly.
Top Stock Trades for Tomorrow #3: Adobe Systems
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Adobe Systems (NASDAQ:ADBE) is rallying after better-than-expected earnings and despite worse-than-expected guidance for next quarter. That’s surprising, given most stocks trade on guidance rather than the past quarterly results.
But it doesn’t matter; price action does.
Wednesday’s rally vaults ADBE over the key $285 level. As long as it can maintain this price, bulls can stay long. Over $292 will land Adobe at new highs and could spark a rally to $300.
Below $285 puts the 50-day back in play. Below that puts its June lows on the table.
Top Stock Trades for Tomorrow #4: Shopify
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Does this stock ever stop? While we’ve nailed a few good trades in Shopify (NASDAQ:SHOP) here on InvestorPlace, I admit that I missed my opportunity to buy this name as a long-term hold. But my oh my, what a breathtaking rally this has been.
That said, don’t make it more complicated than it needs to be. Simply put, this one is bouncing higher off its 20-day moving average, rallying to channel resistance (blue line) and consolidating its gains until the 20-day catches up again. Below the 20-day and SHOP may need to reset. Otherwise, keep it simple.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities.
