The markets are attempting a rally on Wednesday, after two days of tough declines. That said, here’s a few top stock trades for Thursday amid that action.
Top Stock Trades for Tomorrow No. 1: Amarin (AMRN)
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Amarin (NASDAQ:AMRN) stock is getting pounded despite beating on earnings and revenue expectations and reiterating its full-year outlook. It leaves the stock hanging around in no man’s land now.
Recently, the stock filled its November gap and investors were looking for earnings to take AMRN back above the 200-day moving average and downtrend resistance (blue line).
Instead, though, it continues lower — recently taking out the 23.6% retracement for the 52-week range.
From here, the situation doesn’t look great. On the upside, bulls need to see AMRN reclaim downtrend resistance. As long as it’s below this mark, bears may keep squeezing Amarin lower. Above this mark, however, puts the 200-day moving average on watch.
Overall, should AMRN keep moving lower, $14 is on the table.
Top Stock Trades for Tomorrow No. 2: Bank of America (BAC)
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If the selling pressure keeps up, support may not buoy Bank of America (NYSE:BAC). However, shares are coming into a notable area after topping out over $35 just last month.
Shares have been hammered this week, falling more than 10% already. It’s now approaching prior multi-year range resistance near $30.50 to $31. BAC also has the 50-week moving average nearby as well.
If these marks fail to buoy BAC, then sub-$30 is possible. I don’t think we’ll see a drop back down to prior range support in this event, but technically speaking, it’s possible. On a rebound, though, see if Bank of America can reclaim $32.
Top Stock Trades for Tomorrow No. 3: Lowe’s (LOW)
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Lowe’s (NYSE:LOW) is making a similar move to BofA, but comes after the company reported earnings. Lowe’s is trading through a big-time level of prior resistance, near $115.
This is not a good look, especially with shares slicing through the 50-day and 100-day moving averages as well. While the 61.8% retracement is nearby, I wouldn’t lean on that for support if the other more significant notes did nothing to help LOW stock.
On the upside, shares need to reclaim $115, then the 100-day moving average. If it can, $120-plus is possible.
Below $115, however, and investors can look for a test of the 200-day moving average near $109.50 and the 50% retracement for the one-year range near $108.50.
Moreover, below that puts $105 on the table.
Top Stock Trades for Tomorrow No. 4: Carnival Cruise (CCL)
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Here we have a ten-year weekly chart of Carnival Cruise (NYSE:CCL). Shares are down more than 20% this week and roughly 35% so far this year.
The coronavirus news will likely get worse before it gets better, which does not bode well for CCL. Shares knifed right through the $35 mark, which was a notable level over the past decade.
Below it now gives me little reason to think bulls have any control, as buying now is akin to catching a falling knife. The move likely puts $30 in play, and although $22.50 is calling attention to itself for being long-term support, I think it’s a bit too early to start thinking about a decline of that magnitude.
From here, let’s see if and when CCL can catch its balance. Back over $35 bodes well for the bulls.
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.
