Wednesday marked another consolidation day for the stock market, as the S&P 500 continues to hover near all-time highs. Let’s look at a few top stock trades showing a bit more volatility than the broader market is letting on.
Top Stock Trades for Tomorrow No. 1: Uber (UBER)
There’s both good news and bad news when it comes to Uber (NYSE:UBER) stock. After hitting new 52-week lows on Tuesday after earnings, shares cratered lower by about 7% in early Wednesday trading, as the stock undergoes a lockup expiration.
After new lows two days in a row, what possibly could be the good news?
Well, it’s not great news. But one silver lining would be the intraday bounce we’ve seen off the lows. That’s better than closing at or near the session lows, at least technically speaking.
What now? Bulls need to see Uber stock reclaim the prior lows near $28.50, and preferably, reclaim $29. Until it can do that, it’s a tough one to own. Those that are trading it long, be mindful of the new low. Below it and shares can continue to flush.
Top Stock Trades for Tomorrow No. 2: Match Group (MTCH)
What a technical beauty this short was, even though many didn’t play it that way because of earnings. Still, the breakdown in Match Group (NASDAQ:MTCH) was evident.
Known as a descending triangle, downtrend resistance (blue line) was squeezing MTCH stock lower against a static level of support. Once support gave way, Match stock was hammered.
MTCH’s ability to hold the $62.50 to $65 area is impressive. Above it now, let’s see if it can reclaim the 200-day moving average. Below Wednesday’s low and the 38.2% retracement near $56 could be on the table.
Top Stock Trades for Tomorrow No. 3: Kirkland Lake (KL)
Kirkland Lake Gold (NYSE:KL) has put together an excellent wedge pattern (blue lines).
Breaking over the upper wedge line now (resistance), and KL stock may be able to gain some serious upside traction. Particularly if gold begins to move higher as well.
Over the past few months, KL has struggled with the $48 level. However, if shares can clear this mark, a move to $50-plus could be on deck. A close back below the upper wedge line would be discouraging, but not necessarily bearish. For the charts to shift in the shorts’ favor, investors would need to see a close below $44.
Top Stock Trades for Tomorrow No. 4: Humana (HUM)
Humana (NYSE:HUM) delivered a beat-and-raise quarter, and its charts are starting to look more bullish. However, there is some overhead levels to consider.
Shares are reclaiming the notable $300 level, as well as the 38.2% retracement near $304. With potential resistance near $310 and an elevated RSI reading (blue circle), it may be best for shares to consolidate between $300 and $310 over the next few days.
That will allow investors to digest the recent gains, and work up the strength to push shares through $310. Below $300 and investors will need to see if short-term uptrend support (purple line) can buoy the stock price.
Over $310 and the 23.2% retracement near $322 is possible, although it may take time to get there.
Top Stock Trades for Tomorrow No. 5: GW Pharma (GWPH)
GW Pharma (NASDAQ:GWPH) is hurting, down big on Wednesday. Downtrend resistance (blue line) held this one check, while shares gapped right below the 50-day moving average.
The setup now is pretty simple. Either the October lows hold and GWPH can put together some form of a bounce, or they fail to hold and shares trade down to the December lows.
Bulls may want to give this one a few days to shake out before dipping their toe in the water.
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.
