Equities gapped higher, flushed lower and then stabilized for modest gains in Wednesday’s session — although earnings are all the buzz. With all of that in mind, let’s look at a few top stock trades for Thursday.
Top Stock Trades for Tomorrow No. 1: Apple (AAPL)
Apple (NASDAQ:AAPL) stock is rallying, but the move doesn’t come without concern. While it smashed earnings and revenue expectations, and guidance blew past estimates, the stock struggled to hold its modest morning gains before lifting about 3% late in the session.
While the rally did carry Apple to new highs, it’s a relatively modest gain given the quarterly results the company turned in. It’s one thing to no longer be bullish, and another thing to be bearish. Right now, with Apple at all-time highs, the business doing well and the technicals aligned, I have little reason to be bearish. Although, I’m not all that bullish after such a big rally.
The stock technically unwound its overbought condition with Monday’s rapid pullback. But with Wednesday’s breakout over $320 resistance, Apple stock is on the move again. Over $320, and AAPL stock can continue higher.
If it drops below $320, shares could lose more air. Below puts the 20-day moving average, and the recent $304.88 low on the table. Below that, and uptrend support and the 50-day moving average are in play.
Top Stock Trades for Tomorrow No. 2: Advanced Micro Devices (AMD)
That explains why AMD was down about 7% for most of Wednesday’s session.
Shares gapped below uptrend support (blue line) and the 20-day moving average, which have been support for months now. Now, though, it sits at a critical point on the chart. Currently trading near $47, this level has been short-term range support. Should it hold, look to see if AMD can reclaim the 20-day moving average in the coming sessions.
Below $47, and AMD may need more time to cool off, potentially putting $45 and the 50-day moving average on the table. Below that, though, and the $42 to $43 zone is possible.
Top Stock Trades for Tomorrow No. 3: Xilinx (XLNX)
The action leading up to earnings was telling, as the stock broke below channel support (purple line) and lost its 20-day moving average. On the plus side, it did find support at the 50-day moving average, but that doesn’t matter now following Wednesday’s action.
Furthermore, shares gapped lower, dropping below $90. This area of $89 to $90 was a notable layer of support in the fourth quarter. However, below it puts the December low at $87.56 on the table — and below that, XLNX could fall into no man’s land.
On the upside, see how XLNX handles the 50-day moving average on its eventual retest.
Top Stock Trades for Tomorrow No. 4: AT&T (T)
AT&T (NYSE:T) beat on earnings, missed on revenue and turned in a mixed quarter, even though free cash flow was strong and the dividend is secure. Shares slipped about 3% for most of the session, with more downside potential on the table.
If the stock can reclaim the 100-day and 50-day moving averages, then it puts $39 resistance on the table.
Below the 100-day has me more cautious on AT&T in the short term. That caution will intensify should shares fall below uptrend support (blue line). Below that mark puts the $35.50 to $36 area on the table, which has been a rough layer of support since the September gap-up.
Below that puts the 200-day moving average in play, and may give long-term investors a solid dip-buying opportunity.