We’re getting into a very busy week of earnings and it shows on our top stock trades. However, we’re trying to look beyond the quarterly results and focus on other stocks that are also making waves.
Top Stock Trades for Tomorrow No. 1: Lyft (LYFT)
Lyft (NASDAQ:LYFT) stock caught a lift on Tuesday after reports began circulating that management is looking for EBITDA profits to surface about a year before analysts currently expect.
The move sent shares higher by 8% at one point, as Lyft stock ran right into its 50-day moving average.
On the plus side, the stock is out of that nasty little downtrend. The bad news? The charts still look pretty gnarly.
A move above the 50-day could spring Lyft to the $48 area. Not only has this mark played a significant role as both support and resistance, but it also marks the 78.6% retracement. On the downside, see that recent support at $40 holds. Falling below that level puts the October low back on the table.
Top Stock Trades for Tomorrow No. 2: Shopify (SHOP)
We have been cautious on high-growth stocks lately. With Tuesday’s continued selloff in the group, that caution has been reinforced.
Shopify (NASDAQ:SHOP) is a great company, but it has a high valuation and hasn’t come down as hard as many of its peers. But the technical damage is starting to show. Shares failed to reclaim the 78.6% retracement and 50-day moving average earlier this month.
After the rejection, shares ultimately lost the 100-day moving average and channel support (blue line). If it loses the 61.8% retracement, the $286 lows from September are most definitely on the table.
Below those lows and we may finally get a test of the 200-day moving average. That also comes into play just above the 50% retracement. Unlike some of its peers, SHOP stock has not hit the down-40% mark. To do so, Shopify would need to hit around $246.
Top Stock Trades for Tomorrow No. 3: Procter & Gamble (PG)
Procter & Gamble (NYSE:PG) neared its all-time highs on Tuesday, after a top- and bottom-line earnings beat. However, investors are hesitating to bid the stock higher. What gives?
Over the 50-day moving average is constructive, as is the stock being over $122.50. Investors may rather wait for a move its prior highs though, which could trigger a rally toward $130. On the downside, consider buying dips into the 100-day moving average and uptrend support (blue line).
Below the former and PG will need more time to set up on the long side.
Top Stock Trades for Tomorrow No. 4: Lockheed Martin (LMT)
Lockheed Martin (NYSE:LMT) is an interesting one too. After a beat-and-raise quarter, LMT is actually lower on the day. Hmm…
If the stock can hold over $371, tempted bulls can hang with LMT. However, a move below Tuesday’s low (and thus the notable $370 level and the 78.6% retracement at $365.79) would make the stock a no-touch for the time being.
Over $371 and the 100-day moving average, makes a move to the 50-day possible. Above that and $390-plus is possible.
Top Stock Trades for Tomorrow No. 5: United Parcel Service (UPS)
United Parcel Service (NYSE:UPS) turned in a mixed quarter, beating on earnings by a penny but missing on revenue expectations. However, management backed its full-year guidance.
As such, shares were able to erase a bulk of its early losses Tuesday.
The chart for this one is pretty sloppy. I’m not a big head-and-shoulder guy, but this one has all the makings of one. A close below $112 — which fittingly comes into play near Tuesday’s low and the 100-day moving average — would be a bearish sign for the stock. It puts the $104 to $110 area on the table.
Over $116 and the 78.6% retracement, could spark a move to the 50-day moving average up near $117.50. Above that and $120 is 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 cheesy Lyft puns.
