Tech was under pressure after a concerning earnings report from Texas Instruments (NASDAQ:TXN), although many stocks were able to shake off the morning and extended-hours lows. Overall, equities were mixed as investors digest a bevy of earnings reports.
Top Stock Trades for Tomorrow No. 1: Boeing (BA)
On Friday, Boeing (NYSE:BA) shares plunged through a vital level of support. Not only did former support at $360 fail, but all of its major moving averages failed to buoy BA.
The stock almost took out the August low near $319.50, eventually bottoming at $324.40 earlier this week. That mark will be in focus after Wednesday’s post-earnings rally failed.
Now we have to see if the recent low will hold. If it doesn’t and BA stock loses the August lows, $300 could be on the table. Given the news lately, that wouldn’t surprise me. If the lows hold or Boeing doesn’t get there, see how it handles Wednesday’s high on a rebound. I suspect $360 will act as resistance, as will its moving averages.
This chart is quite sloppy at the moment.
Top Stock Trades for Tomorrow No. 2: Chipotle (CMG)
Chipotle (NYSE:CMG) has been a relative strength leader for most of 2019, but is pulling back on Wednesday.
The 5% post-earnings decline is nothing to get too concerned about, given that shares are still up 83% on the year. Still, $850 has been resistance and shares are now below the 50-day moving average.
The last time CMG stock tested its 100-day moving average came in June, before it reversed and rocketed higher. Aggressive bulls may consider a similar setup this time around. If it works, look for a rally back to the 50-day moving average.
Should the 100-day fail as support, let’s see what steps up as support. The 78.6% retracement is down at $765, while the $725 level looms large with the 200-day moving average just below it. After such a run, I would suspect the 200-day to draw in buyers should Chipotle get there.
Top Stock Trades for Tomorrow No. 3: Snap (SNAP)
Snap (NYSE:SNAP) has been a volatile play over the last month, and that was before the stock’s post-earnings fall on Wednesday. Investors looking for a long position may have a solid setup though.
Just below Wednesday’s low of $12.93 is the 200-day moving average and former resistance near $12.50. If this level holds, a bounce to $14-plus is on the table. If it fails, the 50% retracement could be the next stop.
Top Stock Trades for Tomorrow No. 4: iRobot (IRBT)
Wow, is the chart of iRobot (NASDAQ:IRBT) ugly or what? Shares plunged through a significant level near $55. Now, a decline into the $38 to $40 zone may be on the way.
Shares are down more than 60% from the highs just a few months ago. At some point, the pain has to end. But I’ve learned the hard way about guessing when that will happen.
IRBT is a no-touch for me. For those who can’t resistance, a dip of another $7 to $9 offers a more measured risk/reward. That or a move north of the $55 mark and the 10-week moving average may signal short-term momentum is back with the bulls.
Top Stock Trades for Tomorrow No. 5: Beyond Meat (BYND)
Beyond Meat (NYSE:BYND) is finally rolling over. Shares peaked months ago near $240 and are breaking below $100 on Wednesday.
With the decline, BYND stock filled its June gap, while its 23.6% retracement sits down at $90.95. If that fails to buoy Beyond Meat, more downside could be coming and investors may want to look out.
If it holds, a bounce to $120-plus is possible … provided BYND can reclaim $100.
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.
