Conflicting trade reports made for a back-and-forth session in the stock market. Ultimately, equities were slightly lower heading into the weekend, but given where we came from on Monday, it wasn’t a bad showing from the bulls this week. Here are some top stock trades to consider for next week.
Top Stock Trades for Tomorrow No. 1: J.C. Penney
With shares of J.C. Penney (NYSE:JCP) trading under $1, it’s now on notice from the NYSE. Will shares be delisted? It’s a lengthy process, but it could happen now that the stock is deep in the doldrums.
Shares are now resting on the lows near 60 cents. While the downside is obviously limited — to $0 — there are many far-less-speculative names for investors to trade. A rebound to 80 cents is possible, but so is a decline to new lows.
My plan with JCP stock? Don’t gamble on it.
Top Stock Trades for Tomorrow No. 2: The Trade Desk (TTD)
Shares of The Trade Desk (NASDAQ:TTD) were up several percent at one point on Friday, but are now just above flat for the session. I was lucky enough to snag some at $250 in after-hours trading, even though technically speaking, it was breaking key support at that point.
But after-hours trading can be extra volatile, throwing technicals to the sidelines amid the chaos. I happen to really like the TTD story, so it was less about the technicals and more about the fundamentals.
Amid regular trading hours, though, TTD remains above the $255 breakout and continues its trend higher. Shares bounced right off of uptrend resistance on Friday, as it hit new highs. For TTD to remain healthy, it needs to hold uptrend support and its 50-day moving average.
$300 isn’t out of the question if bulls grab control over the overall market.
Top Stock Trades for Tomorrow No. 3: Dropbox (DBX)
Dropbox (NASDAQ:DBX) stock is plunging 14% on the day to new lows after reporting earnings. The setup is not pretty.
Aggressive bulls can try a long position against the $18.50 low and look for a possible rebound up to $21. I would be surprised if bears didn’t sell into that area should it rebound that far. Below $18.50 and more lows are possible.
I don’t like to trade the first day of a big plunge. Instead, I’d rather see it hold as support before getting long. Breaking the $18.50 low and reclaiming it in the same session would be encouraging.
Top Stock Trades for Tomorrow No. 4: Yelp (Yelp)
Yelp (NASDAQ:YELP) is jumping on better-than-expected earnings on Friday, climbing more than 8%. Shares initially climbed above the 61.8% retracement at $38.18, but failed to hold that mark throughout the session.
Over $36.22 is good though, as it keeps Yelp over short-term resistance and its major moving averages. On a pullback, investors can buy Yelp should support hold strong.
On a move over the 61.8%, look for a push over Friday’s highs. If Yelp can get above it, $41 is the next upside target.
Top Stock Trades for Tomorrow No. 5: PVH Corp (PVH)
PVH Corp (NYSE:PVH) is hitting new 52-week lows as well, down more than 4% Friday.
Now below $85, the $65 to $70 zone is certainly possible. See if this area holds up as support should PVH stock fall that far. On a rebound, see if $85 acts as resistance or if PVH can reclaim it.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long TTD.
