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5 Top Stock Trades for Thursday: PINS, V, BAC

Here are the top stock trades we’re watching for Thursday morning

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)

Top Stock Trades for Tomorrow No. 1: Pinterest (PINS)
Source: Chart courtesy of StockCharts.com

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)

Top Stock Trades for Tomorrow No. 2: Visa (V)
Source: Chart courtesy of StockCharts.com

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)

Top Stock Trades for Tomorrow No. 3: Bank of America (BAC)
Source: Chart courtesy of StockCharts.com

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)

Top Stock Trades for Tomorrow No. 4: Virgin Galactic (SPCE)
Source: Chart courtesy of StockCharts.com

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)

Top Stock Trades for Tomorrow No. 5: Village Farms (VFF)
Source: Chart courtesy of StockCharts.com

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.


Article printed from InvestorPlace Media, https://investorplace.com/2020/01/5-top-stock-trades-for-thursday-pins-v-bac-spce-vff/.

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