Stocks started off higher on Thursday, but an unexpected 1% midday drop startled the bulls. That said, let’s look at a few top stock trades as we near the end of the week.
Top Stock Trades for Tomorrow No. 1: Apple (AAPL)
Let’s do a two-chart look at Apple (NASDAQ:AAPL), as a daily and weekly look really paints a better picture of the situation. First is a weekly chart of the tech giant, while below is a daily.
As you can see on the weekly chart, shares have been on an impressive surge. Notice that the 10-week moving average has been guiding the stock higher, while resistance just under $330 has kept a lid on the stock. This paints a very healthy picture for longer-term trend traders.
If Apple closes lower on the week — which it’s set to do — it will have still risen in 21 of the past 26 weeks. However, you may also notice that three of the five down weeks has come in the past five weeks. That waning momentum is actually a good thing, as it lets the stock rest before potentially resuming higher.
You can see that rest on the daily chart here in the weekly chart.
After previously bouncing aggressively off the 20-day moving average in the fourth quarter, Apple has struggled with this mark in the first quarter. Shares were unable to make a new high this month after doing so in January, despite the overall indices continuing to do so as recently as this week.
That said, it continues to make higher lows, as it rides uptrend support higher (blue line).
For Apple, the setup is getting simpler. If it can push through the current 52-week high of $327.85, then a move over $330-plus is possible, as is a continuing rally higher. If uptrend support breaks and AAPL takes out this week’s low of $314.61, however, then the $300 to $304 zone is possible — including the 50-day moving average.
Top Stock Trades for Tomorrow No. 2: ViacomCBS (VIAC)
While VIAC had put in a solid bounce over the past few weeks, its weekly chart never signaled the all-clear. Shares failed to reclaim the $35 mark on a weekly basis, which was range support over the past few years.
Now plunging below it, VIAC stock has trapped in a lot of shareholders at higher prices. See if it can hold the low this week. If it can, $32.50 is a possible upside bounce target. Above that, and $35 is possible. Below $30, however, and the sellers remain in control.
Top Stock Trades for Tomorrow No. 3: Virgin Galactic (SPCE)
Virgin Galactic (NYSE:SPCE) continues its wild and volatile price action. Shares are practically unchanged on the day, despite sporting a $12 range. To put that in perspective, investors have seen as much as a 13.7% rally and an 18.3% loss from Wednesday’s close, all in the same session.
This one is too explosive for my trading style, but so long as the stock is above the 10-day and 20-day moving averages, as well as the $28 to $30 level, bulls remain in control.
I don’t expect this action to end well for SPCE, but that doesn’t mean it can’t go to $50 or higher in the meantime.
I will say that if a pullback to $20 lines up with the 50-day moving average, a dip-buy may be attractive. But, we’ll see.
Top Stock Trades for Tomorrow No. 4: L Brands (LB)
On the upside, see if LB can reclaim $25. Above short-term resistance at $25, and long-term range resistance at $27 is possible. Below short-term support at $22 and the 20-day moving average, though, and $20 is possible. There, LB will find the 50-day and 200-day moving averages.
Below that, and $19 is in play.
Top Stock Trades for Tomorrow No. 5: Stamps.com (STMP)
I’m not all that keen on trading SPCE, but I’d rather handle it than Stamps.com (NASDAQ:STMP). Shares are up 65% at market close Thursday, as this wild rider continues its recent rally to the upside.
This thing is like volatility on a cocktail of high-powered drugs. Shares fell over 80% in just a few months, dropping from over $200 per share to a low around $33. It’s roughly quintupled since.
In any regard, it’s got a massive gap between around $100 and near $200 — and is currently trading near $160. To make it as simple as possible, I would say bulls are in control with shares over the 38.2% retracement near $138. Above that, though, and a gap-fill toward $200 is possible.
Below the 38.2% retracement puts the post-earnings low on the table, which is at $124.50. Below that, and a dip down to $100 is possible.