Coronavirus, shmoronavirus. The market just doesn’t care, with the S&P 500 hitting another new all-time high on Wednesday. That said, let’s look at a few top stock trades for Thursday.
Top Stock Trades for Tomorrow No. 1: Boeing (BA)
Boeing (NYSE:BA) shares remain under pressure, as its 737 MAX woes continue to weigh on investor sentiment. Now though, the stock is breaking through critical range support.
Over the past 18 months, only the market-wide, fourth-quarter meltdown was enough to take BA stock below $320 range support. For the past year, any negative 737 MAX news was met by buyers near this mark — until now.
$320 support gave way this week, and now BA is knifing through its 150-week moving average. For many, BA is a no-touch. That is, until it reclaims $320 range support, or gets to a lower price. In the event of more downside, let’s see if BA revisits the 2018 Q4 lows between $285 and $290.
Below puts the 200-week moving average near $265 on the table.
Top Stock Trades for Tomorrow No. 2: Aphria (APHA)
The stock is hitting its highest level since it closed at $5.50 on Dec. 13, as it breaks out over that same price and continues to gain after pushing through downtrend resistance (purple line).
Bulls would love to see APHA power through the 200-day moving average, although it may very well act as resistance on its first test.
If Aphria shares pullback, bulls need to look for two areas of support. The first is $5.50, which had been resistance for months, while the second is the 50-day moving average and uptrend support (blue line). Below, and $4.50 is back on the table.
Top Stock Trades for Tomorrow No. 3: JD.com (JD)
Above is a multi-year, weekly chart of JD.com (NASDAQ:JD), which shows the impressive bullish volume in the stock over the past few quarters. The stock hammered out a nice bottom near $20 in late 2018, and has been working higher ever since.
For most of 2019, JD.com was setting up in a beautiful long-term ascending triangle. That’s where rising uptrend support (blue line) squeezes a stock against a static level of resistance. The latter came into play near $32 and the 200-week moving average.
Bulls got what they were looking for in the form of a big-time breakout. JD has since reclaimed $36, and continues to rise. If it can maintain this week’s gain, investors are looking at a bullish, engulfing candle — suggesting more upside could be in store.
Over $42, and the $44 to $46 range is on the table. Historically, JD.com has struggled above this area. Above it, and $50 is possible. Below $39, and perhaps we can get a test of $36. Should the market really unravel, I’d love to scoop JD up at $32.
Top Stock Trades for Tomorrow No. 4: Virgin Galactic (SPCE)
You want to talk about volume, though? Just check out the profile on Virgin Galactic (NYSE:SPCE). This stock continues to erupt higher and higher, leaving the stratosphere.
We flagged the stock on its breakout over $12, paving the way to some tremendous gains, although I have been more cautious on the name north of $15. Like I said then, there could certainly be more upside, but no way can we be buyers here near $20 when SPCE was at $11 just a few days ago.
Maybe we can buy a pullback, if there are signs that bulls still have momentum. Otherwise, we could see this one blow its top off and then fizzle.