Markets inched their way higher Wednesday, as the U.S. and China signed phase one of the trade deal. With that said, let’s look at a few top stock trades for Thursday.
Top Stock Trades for Tomorrow No. 1: Pinterest (PINS)
Momentum has shifted for Pinterest (NYSE:PINS), and shares have been on fire over the past two days after reports of positive user data.
The stock is cooling off a bit on Wednesday, but it’s got buyers wondering when and if to buy the dip. How do we navigate the stock after yesterday’s 10% rally and Wednesday’s move?
A move over Wednesday’s high likely sends it to the 200-day moving average, with $25 above that. A move lower, however, could be met with buyers near $21. If it’s not, PINS stock could drop to the $19 to $20 area.
If that’s the case, it may be an excellent buying opportunity, with uptrend support (purple line), the backside of prior downtrend resistance (blue line) and the 20-day and 50-day moving averages all clustered in this zone. Below this area, and the long trade is broken.
Top Stock Trades for Tomorrow No. 2: Visa (V)
Visa (NYSE:V) stock has been surging in 2020, keeping up its momentum from the fourth quarter. Shares burst over uptrend resistance (blue line), and are now knocking on the door of $200.
It will likely be met by sellers initially, particularly as the stock is technically overbought (blue circle). On a pullback, the first level of support is the backside of prior trend resistance.
Below that, uptrend resistance (purple line) and the 20-day moving average are on the table. As for upside, Visa can keep going. But at this stage of the move, I am not a buyer at current levels.
Top Stock Trades for Tomorrow No. 3: Bank of America (BAC)
Bank of America (NYSE:BAC) beat earnings, but not revenue expectations for fourth quarter — and is failing to rally on the day. Shares are down about 2% on the move, but even worse, it’s breaking key levels.
BAC stock is now below the 20-day moving average and uptrend support (blue line). A slightly larger decline will send it below $34.40, which has been short-term range support. In that case, it will put the 50-day moving average and $33.50 area on watch.
For longer-term buyers, Bank of America may present a solid buying opportunity lower at $32.
Top Stock Trades for Tomorrow No. 4: Virgin Galactic (SPCE)
When we were looking at a bullish trade in Virgin Galactic (NYSE:SPCE), I did not anticipate such a powerful move so fast.
But that’s exactly what we’ve got, with shares breaking out over $12. That occurred four trading sessions ago, and now shares are already at around $15 — up 25%.
The move sent shares up through channel resistance (blue line), and while even more upside could be in play — like Visa — it’s hard to be a buyer right here. Above $13.75, and bulls are still technically okay, while pullbacks to this level and to prior channel resistance may be bought should buyers step up.
Below $13.75, and channel support along with the 20-day moving average are in play.
Top Stock Trades for Tomorrow No. 5: Village Farms (VFF)
Cannabis stocks have been on fire lately, and Village Farms (NASDAQ:VFF) is making a comeback, too. The stock has erupted over downtrend resistance (blue line) and the 20-day moving average Wednesday. Now, it’s trying to reclaim the 50-day moving average.
If it continues higher, the 200-day moving average could be the next upside target. On a pullback, I want to see the 20-day moving average and downtrend resistance hold as support. Below $5.40, and the long trade is broken.
On a dip, look to see if VFF can establish a higher low — but keep in mind, this is a very speculative play.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long PINS.
