While it was a relatively quiet day in the stock market, Wednesday featured several big individual movers. Let’s look a few of them as our top stock trades.
Top Stock Trades for Tomorrow No. 1: Advanced Micro Devices (AMD)
Shares of Advanced Micro Devices (NASDAQ:AMD) again pushed to new highs. That should come as little surprise, as this name has been displaying strength for quite some time. So have semiconductor stocks as a whole.
The recent move has been nothing short of impressive. Shares finally exploded over the $34.30 area, while doing an excellent job consolidating its gains above $36. After forming a short-term wedge (purple lines), the stock is again putting up strong gains.
For bulls just joining in, they’re a little late to the party. Shares remain overbought and the question now becomes when and how far the stock corrects, not whether it will.
Honestly, it would have been more ideal to see shares correct now. It would unwind the overbought condition, while possible hitting the rising 20-day moving average. I’m looking for the latter to act as potential support when the stock does eventually correct.
Otherwise, I’d love to see a test of the $34.30 to $35 area and see former resistance turn to support.
Top Stock Trades for Tomorrow No. 2: Canada Goose (GOOS)Canada Goose (NYSE:GOOS) has not had the easiest time as a public company. For all of 2019, the stock has continued to make a series of lower highs, a bearish technical development. On the plus side, the stock was also starting to put in some higher lows over the past few months.
That series of higher lows and lower highs formed a wedge pattern (blue lines). Bulls were hoping that shares would breakout of that range, something GOOS stock tried to do last week.
With Wednesday’s earnings reaction though, shares are resolving lower. Now bulls need to be patient and see where support comes into play. If the June low of $31.67 is taken out, GOOS could be in trouble.
Top Stock Trades for Tomorrow No. 3: Fastly (FSLY)Fastly (NYSE:FSLY) shares reported solid earnings last week and erupted higher. However, resistance batted the name lower and discouraged many investors with its lower finish on the day.
But on Wednesday, the stock jumped more than 10%, as bulls wrestle for control.
Shares are reclaiming the 8-day and 20-day moving averages, and are flirting with a move over downtrend resistance (blue line). $22 has been a tough hurdle for the stock and Wednesday’s action is proving as much.
Over that mark, the 50-day moving average is the next immediate upside target.
Top Stock Trades for Tomorrow No. 4: Datadog (DDOG)
Like Fastly, Datadog (NASDAQ:DDOG) stock is jumping higher Wednesday, up over 15% at one point.
Unlike FSLY though, DDOG was able to surge to new highs on Wednesday’s move. However, that same $41.50 area remains a no-go for the stock at the moment. Now what?
Bulls will want to see Datadog hold onto Wednesday’s gains, which can be accomplished by holding up over the 78.6% retracement. That should give the stock plenty of cushion for a potential move higher. A drop below Wednesday’s low and DDOG would need more time to develop.
Top Stock Trades for Tomorrow No. 5: Disney (DIS)
I do not usually cover the same stock in a very short period, but Disney’s (NYSE:DIS) big rally on Wednesday deserves another look.
We told bulls that the must-hold level is the 100-day moving average. DIS did just that, erupting through the post-earnings high on Wednesday and climbing into the mid-$140’s. From here, over $145 puts the prior high of $147.15 on the table. Above that and $150 is possible.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long FSLY and DIS.