Federal Reserve Chair Jerome Powell talked about an accommodative stance, which to investors’ ears sounds a lot like “rate cut.” That got equities moving higher in morning trade, where the S&P 500 cracked 3,000 for the first time. However, bulls were not able to maintain their sugar high into the afternoon, with stocks giving up some of those gains. Let’s take a look at a few top stock trades.
Top Stock Trades for Tomorrow #1: Advanced Micro Devices
Click to Enlarge
The burst higher in Advanced Micro Devices (NASDAQ:AMD) should be no surprise to InvestorPlace readers, as we lined this one up a few days ago as a solid trade. And for investors, they were able to turn a quick 12% on AMD in less than a month.
Now what?
Shares don’t look to be tiring much, but they are running into resistance in this $33 to $34 area. If it can push through, rallying up to $35+ for instance, then I would look to see if this prior resistance zone can begin acting as support. If that plays out, it bodes well for higher prices.
Below $33 and bulls may have to wait for a retest of the 20-day moving average and/or uptrend support.
Top Stock Trades for Tomorrow #2: Citigroup
Click to Enlarge
For the last 18 months, the $71.50 to $72 area has been acting as resistance for Citigroup (NYSE:C). That’s been the ceiling this whole month, even after Citigroup raised its buyback and dividend.
Bulls are hoping shares can breakout and push through this mark. If it does, a run to channel resistance (blue line) near $74 is on the table. That will also put C stock near its 52-week highs around $73.73.
Should shares pullback, see if C stock finds support at its 20-day moving average. Below and its 50-day moving average comes into play.
Top Stock Trades for Tomorrow #3: BlackBerry
Click to Enlarge
The action in BlackBerry (NYSE:BB) has been pretty ugly. At the end of June, shares raced up to $9, but were swiftly batted lower by the 50-week and 200-week moving averages.
We flagged that as a major warning sign and with BB stock now flirting with last month’s lows, $6.50 range support looks to be a possibility. See if the stock hold this $7.10-ish area. Below and it’s a no-touch until support comes into play.
Top Stock Trades for Tomorrow #4: WD-40
Click to Enlarge
Shares of WD-40 Company (NYSE:WDFC) jumped higher on better-than-expected earnings results, up more than 10% at one point.
The stock backed off the $180 level, which isn’t too surprising considering how much resistance seems to be sitting between $180 and $182.50. On the plus side, WDFC is now above all three major moving averages and is responding well to its earnings report.
I would be more inclined to sell the rally into $182.50 if it gets there this week. Otherwise, let’s see where this stock bases from here. A breakout over $183 could trigger a move to the highs near $186.18.
Top Stock Trades for Tomorrow #5: Delta Air Lines
Click to Enlarge
Delta Air Lines (NYSE:DAL) is set to report earnings on Thursday morning, and optimism is high heading into the report. Management recently gave a positive update, and American Airlines (NYSE:AAL) issued positive data on Wednesday.
This $58 to $59 area has been resistance for Delta, so it would be extremely encouraging to see it hold as support going forward. Of course, earnings will play a large role in the upcoming action.
The options market is pricing in a ~3.5% move by Friday’s close, so it will be interesting to see if it can hold this mark. If it doesn’t, let’s see if either the 10-week or the 50-week moving average can support it.
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.
