All eyes were on the Federal Reserve Wednesday, as the Fed cut interest rates by 25 basis points. Let’s look at a few top stock trades as earnings remains in full swing.
Top Stock Trades for Tomorrow No. 1: Facebook (FB)
Facebook (NASDAQ:FB) will report earnings after the close Wednesday. Shares continue to struggle with the $190 level, near where the 78.6% retracement happens to come into play.
So far, FAANG hasn’t been all that volatile on earnings. Will FB stock be any different?
On the upside, see if FB stock can take out its recent high at $192.53. Over $195 opens the door to $200, with the 52-week high sitting up at $208.66. At the very least, see that it holds $190 should shares rally.
On a decline, I want to see FB stock hold the 200-day moving average near $180. That’s less than 4% from current levels. Below puts $175 on the table, which is roughly the 61.8% retracement.
Below the October low of $173.09, range support near $160 is possible.
Top Stock Trades for Tomorrow No. 2: Johnson & Johnson (JNJ)
Johnson & Johnson (NYSE:JNJ) stock is rallying after announcing that it did not find any traces of asbestos in its recent baby powder recall.
The stock has been stuck in a painful trading range, between $132 on the upside and $126 on the downside. Near the former now, let’s see if JNJ can clear $133 — the 50-week moving average — and maintain over range resistance.
If it can do that, the recent high at $137.50 is on the table. If it can’t clear $132, it may remain range-bound for longer. This one keeps wanting to break out, but so far has failed to do so. A weekly close above $133 could ignite a larger rally.
Top Stock Trades for Tomorrow No. 3: Electronic Arts (EA)
Electronic Arts (NASDAQ:EA) delivered an earnings beat, sending shares higher on Wednesday.
However, the modest rally keeps EA stock trapped in a wedge pattern (blue lines). While support held Wednesday, shares have a cluster of moving averages overhead, as well as wedge resistance.
For bulls looking for a position, it may be better to wait for EA to gain some more bullish momentum. Clearing wedge resistance puts it above all of its major moving averages and puts the 78.6% retracement on the table. Above that and $103.50 is possible, with the 52-week highs sitting up near $109.
Below wedge support, and the $91 mark is on the table. Below that and $87 is possible.
Top Stock Trades for Tomorrow No. 4: AMD (AMD)
Shares of Advanced Micro Devices (NASDAQ:AMD) are trading pretty well even though they’re trading around even on Wednesday after AMD missed on revenue estimates and reported in-line earnings results. However, many bulls likely consider it a win considering the stock rallied more than 20% from the October lows to the recent high at $33.91.
Further, the stock continues to hold up north of $32, a bullish development given that this level has been resistance for two months.
Each rally to $34.30-plus has been sold into, but let’s see if we can eventually get a close over this mark. If AMD is able to do so, the highs at $35.55 are on the table. Below $32 and bulls need to see the 78.6% retracement and 100-day moving average hold as support near $31.50. Below puts the 50-day moving average near $30.50 on the table.
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.
