5 Top Stock Trades for Wednesday: FB, AVGO, SCHW

Here are the top stock trades we’re watching for Wednesday morning

While the stock market started off higher on the day, selling gripped the indices as the market turned lower on Tuesday. Let’s take a closer look at a few top stock trades.

Top Stock Trades for Tomorrow #1: Facebook

Facebook (NASDAQ:FB) stock is at a very critical level at the moment. Not only is it resting on the notable $175 level, but it’s also on the 200-day moving average. Further, the 61.8% retracement is at $175.98.

Should this confluence of support fail to provide FB stock a bounce, bulls could be looking at a decline down to the $160 area. If it holds, look for a rebound up to the 50-day moving average.

If Facebook stock can reclaim the 50-day, a rally to $193.10 — the September high — is possible.

Top Stock Trades for Tomorrow #2: Broadcom

top stock trades for AVGO

This one remains peculiar, doesn’t it? Broadcom (NASDAQ:AVGO) continues to trade in a narrowing wedge as the 200-day moving average keeps buoying the name.

So what now? Confident investors may consider buying the stock near current levels, as AVGO remains perched on long-term uptrend support (black line). Below could usher in a move to the 50% retracement near $265.75. Below that and investors may consider stopping out, as further selling could take place.

If support holds, look for a rally back up to downtrend resistance (blue line). Over this mark and $290+ is possible, with the September highs near $299.50 on the table.

Eventually, something will have to give with a tightening range like this.

Top Stock Trades for Tomorrow #3: Charles Schwab

top stock trades for SCHW

Charles Schwab (NYSE:SCHW) took it on the chin Tuesday, falling about 10% on the day. However, the stock fared better than many of its peers, after SCHW announced commission-free trading.

Still, it drops SCHW stock into an important area. Roughly $37 has been long-term support, while downtrend resistance has been squeezing the stock lower for more than a year.

Should support give way, it puts the 2019 low at $35.85 on the table. Below that and SCHW could decline into the $30 to $32.50 area. On a rebound, see if it can reclaim the 50-week moving average and downtrend resistance (blue line).

Top Stock Trades for Tomorrow #4: TD Ameritrade

top stock trades for AMTD

As you can see, some of Charles Schwab’s peers have it much, much worse. TD Ameritrade (NASDAQ:AMTD) lost a quarter of its value on Tuesday, wiping out two years’ worth of gains.

It thrusts AMTD into a vital level down near $35. Below this mark could push AMTD down into the $30 to $32 area. Should AMTD rebound, let’s see if shares can reclaim the $37.50 mark. Above it and $40 could be in the cards.

Top Stock Trades for Tomorrow #5: Stitch Fixtop stock trades for SFIX

Stitch Fix (NASDAQ:SFIX) has put in two solid days of trading ahead of the company’s earnings results after the close on Tuesday.

I’m not making any predictions for this high flyer. Instead, I will provide a few levels to watch.

SFIX broke over downtrend resistance (blue line) earlier this month, then formed a double bottom near $18. This level now becomes a must-hold mark. Below could usher in a move down to its 52-week low at $16.05.

On a rally, I want to see Stitch Fix reclaim its 50-day moving average and preferably, the $21.75 area. Above $22 and SFIX can see the 200-day moving average.

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.


Article printed from InvestorPlace Media, https://investorplace.com/2019/10/5-top-stock-trades-for-wednesday-fb-avgo-schw/.

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