It’s one of the busiest earnings days of the years, as an influx of quarterly numbers hit the wires on Thursday. Here’s a look at a few top stock trades for Friday.
Top Stock Trades for Tomorrow No. 1: Twitter (TWTR)
Sorry bulls, but there’s no way to sugarcoat the beating in Twitter (NYSE:TWTR). Shares were rocked lower by 20% on the day with earnings being the culprit.
Amid the decline, TWTR fell out of its rising channel (blue lines) and knifed right through the 50-week moving average like it wasn’t even there.
Aggressive bulls may consider a long position in Twitter near $28. However, it may be too tempting on the long side should it get to about $26. That level has been a significant mark in the past, while the rising 200-week moving average is just below.
Top Stock Trades for Tomorrow No. 2: PayPal (PYPL)
PayPal (NASDAQ:PYPL) is getting some much-needed reprieve on Thursday, up over 7% after reporting earnings.
While the stock’s sharp rally out of its falling wedge is nice, it would have been more attractive if PYPL were to close over its 50-day and 200-day moving averages.
From here, see if PYPL can reclaim its 200-day moving average. North of that and bulls may consider a long trade. Below the 61.8% retracement, and $100 or lower may be on the table.
Top Stock Trades for Tomorrow No. 3: Ford (F)
Ford (NYSE:F) stock is not having a good day of trading, falling almost 7% after earnings. $9.40 resistance ultimately held Ford in check and now on the downside, bulls will look to see if $8.40 to $8.50 can buoy the name.
Below $8.40 puts the October low of $8.30 on the table. Beneath that and Ford stock may be heading for the $7’s. I’ve said it before and I’ll say it again, Ford is a tough stock to own.
Top Stock Trades for Tomorrow No. 4: 3M Co (MMM)
Earlier this month in back-to-back weeks, 3M Co (NYSE:MMM) bounced off the $150 area. This mark was support in 2016 after acting as resistance in 2015.
Holding this mark now would be best for 3M Co bulls, particularly after its earnings report. Falling below it could usher in a wave of selling for this dividend stud. On the upside, we need to see a move north of $170, clearing it over short-term downtrend resistance (purple line).
From there, it puts $180-plus is on the table, where it will find its 50-week and 200-week moving averages.
Top Stock Trades for Tomorrow No. 5: Lam Research (LRCX)
Despite the doom and gloom of the others, Lam Research (NASDAQ:LRCX) is a breath of fresh air. Shares are up more than 12% to new 52-week highs on the day. That also gave a big boost to chips and semi stocks.
Shares have been moving higher in a channel over the past year. That action continues now after its breakout over $240. See that $240 now holds as support on a future pullback, while looking to see if channel resistance does its job and acts as resistance.
Keep in mind, the stock has a Fibonacci extension up at $273.85. In combination with channel resistance that area could impede LRCX stock in the short-term, should it continue higher.
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.
