The markets ramped higher on Friday, with the S&P 500 and Nasdaq both hitting new all-time highs. Stocks were fueled higher by earnings, as investors continue to gobble up stocks amid solid GDP growth and a likely interest rate cut next week. Let’s look at a few top stock trades going into next week.
Top Stock Trades for Tomorrow #1: Intel
Intel (NASDAQ:INTC) was posting robust gains in the after-hours trading session. But unlike Starbucks (NASDAQ:SBUX) and Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG), the stock could not hold those gains. Shares fell less than a percent, but the bearish reversal doesn’t look pretty.
INTC stock was just starting to fill its previous post-earnings gap from April (blue box). It was also starting to breakout over short-term channel resistance (blue line). If INTC can reverse its losses in the next few days — reclaiming $53 — perhaps it can work on filling that gap back up toward $57.
Should it continue to decline, see that the key $50 level holds as support. If it does, channel support should guide it higher.
Also keep in mind, the 50% retracement for the one-year range comes into play near $50.98, while the 20-day moving average is near $50.
Top Stock Trades for Tomorrow #2: Twitter
The stock’s near-10% move is sending Twitter to its highest level in about a year. Ironically, last July it plunged from $42 down to $31 in just two days on a poorly received earnings result. Now it’s tagging $42 in Friday’s session.
If the stock can reclaim this level, look for a possible push into the mid-$40s. Should $42 acts as resistance for now, see that its post-earnings open — near $40 — holds as support. If it does, look for an eventual retest of $42.
Top Stock Trades for Tomorrow #3: Amazon
Amazon (NASDAQ:AMZN) had a unique earnings reaction to its second-quarter results. Not good enough to justify bidding shares higher, nor bad enough to justify dumping the stock as it’s currently down less than 2%.
On the plus side, we still have a solid setup on the charts. I would have loved to see AMZN hold the $1,950 level and 20-day moving average. However, if the stock can reclaim these two marks, it may well make a run at the $2,000 to $2,030 area again. Above it and new highs are possible.
On the other hand, below Friday’s low likely brings up a test of the 50-day moving average just below $1,900.
Top Stock Trades for Tomorrow #4: Aphria
Earlier this week, we asked if Aphria (NYSE:APHA) is heading for $5 per share. Down 6% on Friday to $5.50 and it’s halfway there. Aurora Cannabis (NYSE:ACB), Canopy Growth (NYSE:CGC) and New Age Beverages (NASDAQ:NBEV) all have varying looks of unhealthiness at the moment.
For now, APHA stock needs to hold its January lows near $5.45. Below and it opens the door to $5. However, I wouldn’t buy Aphria here and hope it holds. Instead, I see little reason to buy shares unless they’re either much cheaper or can hurdle multiple levels of resistance.
For Aphria, those resistance levels include the ~$6.30 level, as well as the 20-day moving average. Conservative bulls may even wait for APHA to clear the 50-day moving average.
Top Stock Trades for Tomorrow #5: Uber
Uber (NYSE:UBER) continues to put in a series of higher lows, a bullish technical development, but resistance at its $45 IPO remains in place.
The stock now has a 50-day moving average to trade against, and the stock is maintaining above it. On Friday, it cleared its 8-day and 20-day moving averages as well.
If the 50-day gives way, investors can stop out. If Uber can breakout over resistance, see if it can run to its high at $47.08. Above it could usher in $50+.