The markets continue to march higher as we have just a handful of trading sessions left in the decade. Let’s look at a few top stock trades going into Friday.
Top Stock Trades for Tomorrow No. 1: Tesla (TSLA)
Tesla (NASDAQ:TSLA) shares continue to cruise higher, and that’s got to have the $TSLAQ crowd fuming right now. Shares are up about 130% from the June lows and on Thursday, hit new all-time highs.
While the performance is impressive, hitting the new highs is an even larger feat. The $380 level has rejected Tesla stock numerous times over the past few years. Now above $400, bulls are wondering if $420 — Elon Musk’s infamous buyout price — is on the table.
It certainly could be if TSLA maintains momentum. Eventually though, Tesla stock will find itself under pressure. Below $390 and $360 will be on watch, along with the 10-week moving average and short-term uptrend support (blue line).
The great thing about Tesla is that the stock is very responsive to the technicals.
Top Stock Trades for Tomorrow No. 2: Rite Aid (RAD)
Remember when Rite Aid (NYSE:RAD) was trading for less than a buck? Well, even though shares are now over $10, it’s not what it appears — and no, equity investors didn’t hit a 10-bagger. Earlier this year, RAD stock underwent a 1-for-20 reverse stock split.
So the stock is still struggling, even though it’s up more than 40% on Thursday after the company’s top- and bottom-line beat on Thursday morning.
RAD is just not a stock for me, as there are many other, higher quality names out there. But for those who feel compelled to be in this one, see that it holds $10. Falling below that key mark means shares will also fall below the 50-week moving average. It also puts the December lows near $7.50 on the table.
On the upside, see if RAD can clear the $12.50 level. The eventual upside target is the 100-week moving average near $20.
Top Stock Trades for Tomorrow No. 3: General Mills (GIS)
General Mills (NYSE:GIS) reported earnings on Thursday evening too, but so far the reaction has been pretty mild.
It leaves shares wedging in a tightening range. Downtrend resistance (purple line) continues to squeeze GIS lower, while uptrend support (blue line) and the 200-day moving average continue to guide shares higher.
So who’s right, the buyers or the sellers?
We don’t know right now — and that’s okay. Instead, we’ll wait for one of them to lose. Meaning that, eventually support will give way and give shorts control, or resistance will break and give buyers control.
If it’s the latter, see if bulls can run GIS stock up to $55, where it has struggled this year. Falling below support puts $50 on the table.
Top Stock Trades for Tomorrow No. 4: Medifast (MED)
Medifast (NYSE:MED) shares ripped higher by 10% on Thursday on rumors of a possible go-private bid.
The move thrust shares above $100 and has bulls looking for even more upside. This one is a bit harder to trade because of the potential buyout on the table. But for those that are long, look to see if the stock can rally back to its 200-day moving average.
On a decline, keep an eye on the psychologically important $100 level. Moving below there puts the key $95 level on watch. This level has been critical over the past few months, as both support and resistance. It’s also where the 50-day moving average and uptrend support (blue line) are.
Falling below that puts the stock in no man’s land.
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.
