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4 Top Stock Trades for Friday: AMZN, GE, BABA, GRUB

Here are the top stock trades we’re watching for Friday morning

U.S. stocks started off higher on the day, but failed to hold most of the gains. It leaves market-wide volatility elevated as investors continue trying to digest a bevy of news. Let’s look at a few top stock trades as we approach the weekend.

Top Stock Trades for Tomorrow No. 1: Amazon

Top Stock Trades for Tomorrow No. 1: Amazon

Like we covered with Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) earlier this week, Amazon (NASDAQ:AMZN) is perched in a precarious spot.

AMZN currently has uptrend support (blue line) at $1,770, just below current levels, the 200-day moving average at $1,752 and the 38.2% retracement at $1,766. It’s also at former fourth-quarter resistance.

Buyers who believe Amazon has upside can buy near current levels, stepping out on a move below the 200-day moving average. If it holds, upside targets include the 20-day moving average at $1,846 and the 50-day moving average at $1,899.

Should support fail, look to see if AMZN finds support at the 50% retracement at $1,679 and the 61.8% retracement at $1,591.

Top Stock Trades for Tomorrow No. 2: General Electric (GE)

Top Stock Trades for Tomorrow No. 2: General Electric (GE)

General Electric (NYSE:GE) are getting crushed on Thursday, falling more than 11% to its lowest levels since early January.

We have been all over GE stock this year, looking for a breakout over $10.50 to $10.70. Vital support at $9 gave way, as did the 61.8% retracement and the 200-day moving average near $9.25.

Bulls need to stand aside until GE finds its footing now. Will that be at $7.50? How about $6.50? In between or somewhere even lower?

There’s too many questions to know the answer. What we do know is that $9 is likely to be resistance on the way back up.

Top Stock Trades for Tomorrow No. 3: Alibaba (BABA)

Top Stock Trades for Tomorrow No. 3: Alibaba (BABA)

Alibaba (NYSE:BABA) is forming a long-term wedge, with a series of higher lows and lower highs (blue lines). $170 has proven notable, and it’s also the 38.2% retracement.

Shares opened near $170 and have been retreating ever since, even after a solid quarterly result.

BABA stock is sitting near $165, resting on the 200-day moving average. If it holds, look for a rebound up to downtrend resistance (blue line). Over there, it could trigger a move to $180-plus.

If it gives way, look for a drop down to uptrend support and the 61.8% retracement near $155. Falling below there opens up the door to $150 and, if that fails, BABA could be in trouble.

Top Stock Trades for Tomorrow No. 4: GrubHub (GRUB)

Top Stock Trades for Tomorrow No. 4: GrubHub (GRUB)

Man, I do not like shares of GrubHub (NASDAQ:GRUB), and the decline from the July highs highlights why.

Had support near $60 held, GRUB might have been a worthwhile long with decent risk/reward. Downtrend support (blue line) gave way on Wednesday, paving the way for Thursday’s losses.

A move back over $60 could kickstart a rally back to $65 and possibly higher. The concern for bulls now? $60 becomes resistance, increasing the downside potential significantly. Watch $60. It may be key in the coming sessions.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long AMZN and GOOGL.


Article printed from InvestorPlace Media, https://investorplace.com/2019/08/4-top-stock-trades-for-friday-amzn-ge-baba-grub/.

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