Market volatility soared once the Fed announced it would cut interest rates 25 basis points. That wasn’t the issue so much as chairman Powell’s Q&A session, where he fumbled on a number of his responses. In light of the Fed, there were still plenty of top stock trades to observe.
Top Stock Trades for Tomorrow #1: General Electric
General Electric (NYSE:GE) reported better-than-expected earnings and looked set to rally. However, the stock sold off in Wednesday morning trading, before bouncing higher. Now what?
The stock continues to hover over our $10.50 breakout price, with a new short-term range resistance near $10.70 showing up.
On the plus side, the stock broke below then reclaimed both the 20-day and 50-day moving averages, showing that buyers are willing to step up on dips. Over $10.50 bodes well for GE and a close over $10.75 could trigger a move back to the February highs of $11.27.
Top Stock Trades for Tomorrow #2: Gilead Sciences
Gilead Sciences (NASDAQ:GILD) reported strong earnings results and raised its outlook. That didn’t stop sellers from pushing it lower, though.
Shares held right on channel support, but are stalling near the 200-day moving average. This chart is a little too sloppy at the moment needs some clarity. Specifically, a move over $67 would help the bulls quite a bit.
That would put GILD stock over all three major moving averages, as well as channel resistance and a key level. Below and Gilead may continue to chop around.
Top Stock Trades for Tomorrow #3: Spotify
Shares of Spotify (NYSE:SPOT) are falling on Wednesday after reporting earnings, but are so far maintaining above channel support (blue line).
If SPOT can stay above $150 — which also happens to be the 50% retracement for the one-yer range — it increases the odds that it will retest channel resistance, now up near $157.50. Below $150 puts channel support back on the table. Should it fail to hold, the 50-day moving average is just below at $142.73 and trending higher.
Over channel resistance could trigger a breakout.
Top Stock Trades for Tomorrow #4: Electronic Arts
Electronic Arts (NASDAQ:EA) has been struggling for a while now, but $90 had been support dating back to April. That mark gave way a few weeks and began acting as resistance.
On the plus side, EA’s earnings report was enough to send it back over this mark. On the downside, it’s failing to hold its 50-day and 200-day moving averages. That was true even before the Fed’s announcement that caused a market-wide selloff.
Over these moving averages and investors can play for a rally up to $100. Below and let’s see if $90 can hold as support.
Top Stock Trades for Tomorrow #5: Fiat Chrysler
It’s not a great time for auto stocks, although Fiat Chrysler (NYSE:FCAU) is doing okay after reporting earnings, still up about 2% on the day.
Above is a weekly chart and we can see that the stock is wedging nicely over the last year or so. Shares are currently capped by the 10-week and 50-week moving averages, as well as wedge resistance.
A move over $14 could trigger a larger rally in FCAU, putting FCAU over the 10-week and 50-week moving averages, as well as wedge resistance. A break below uptrend support could put $12 on the table, with the 200-week moving average at $11.50 below that.