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

top stock trades - 5 Top Stock Trades for Wednesday: FB, AVGO, SCHW

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

Source: Chart courtesy of StockCharts.com
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
Source: Chart courtesy of StockCharts.com

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
Source: Chart courtesy of StockCharts.com
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
Source: Chart courtesy of StockCharts.com

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 SFIX
Source: Chart courtesy of StockCharts.com

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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