A reported Brexit deal sent stocks higher in morning trade, although equities had trouble maintaining those gains throughout the session. Let’s look at a few top stock trades for Friday.
Top Stock Trades for Tomorrow No. 1: Morgan Stanley (MS)
Morgan Stanley (NYSE:MS) popped on earnings but is struggling to hold onto its early gains. Now over all of its major moving averages, MS stock looks better than it has all month.
However, it still remains range-bound between $39.50 and $45.50. Until it can push through resistance, it may remain stuck in this range.
Top Stock Trades for Tomorrow No. 2: Facebook (FB)
Despite a continual flow of negative news and headlines, Facebook (NASDAQ:FB) stock continues to hold up.
It’s above all of its major moving averages, as well as downtrend resistance (blue line). Now running into its 78.6% retracement and a recent level of resistance near $190, it will be vital for bulls to push it through this mark.
If it can, look for a rally above last month’s high at $193.10, and then above $195. In this event, look for $190 to act as support on a pullback. If resistance holds steady, look to see if the 50-day moving average can buoy FB on a pullback.
Top Stock Trades for Tomorrow No. 3: Honeywell (HON)
Honeywell (NYSE:HON) is advancing on earnings, but is struggling to push through its downtrend (purple line) and the 100-day moving average. If it can do that, it puts the $172.50 mark on the table, with the $177.58 highs above that.
On the downside, look to see if the 50-day moving average can act as support. Below it puts a test of the 200-day moving average and uptrend support (blue line) in the cards.
Top Stock Trades for Tomorrow No. 4: Gogo (GOGO)
A look at Gogo’s (NYSE:GOGO) daily chart above shows the company has secured a higher low, which is now connected by a blue trend line on the chart above. I want to see shares push through $6, putting $7-plus on the table.
As you can also see, momentum is starting to turn in bulls’ favor via the MACD reading (blue circle). If $6 acts as resistance, bulls need to see the 50-day act as support.
On the weekly chart above, traders can see the stock coiling below $6 and the 100-week moving average. Above them opens the door to the recent high at $7.23. Above that and $8 is possible. On a longer timeframe, the 50-week moving average is a must-hold mark.
Gogo has been an excellent trade for us lately, although it is a speculative play.
Top Stock Trades for Tomorrow No. 5: Union Pacific (UNP)
Union Pacific (NYSE:UNP) is rallying on earnings, but it’s running into some headwinds. Shares are being stymied by the 200-day and 100-day moving averages. It’s also hitting channel resistance (blue line).
However, not all hope is lost for the bulls. On the move, UNP reclaimed its 50-day moving average. It also held the 61.8% retracement. If shares can stay above these two marks, then bulls may look for it to push through resistance.
Below the 61.8% and UNP starts to lose some of the little appeal that it has. A fall below this mark could usher in $157.50 or lower and even drop the stock into the low $150’s.
The charts are messy for this one. Over the 61.8% is good, but over the 100-day moving average is far better. Some may prefer to wait for a clean breakout over $170, putting $178-plus 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 is long GOGO.
