Stocks slipped in the opening minutes of Wednesday trading, but clawed back some of those losses by the close. With that in mind, let’s look at a few top stock trades for Thursday.
Top Stock Trades for Tomorrow No. 1: Goldman Sachs (GS)
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Goldman Sachs (NYSE:GS) is one of the few bank stocks rallying after reporting earnings. The stock traded down just below $170 after reporting its quarterly figures, but has since rebounded from those lows.
Don’t feel like you’ve missed the boat, though. Now we have levels we can trade against.
On the downside, we have a low of $169.15 to measure against. On the upside, there’s clear resistance near $184. If shares of Goldman Sachs can clear resistance over $184, it could fill the gap up toward $190. Above that and there is a plethora of major moving averages up between $205 and $210.
On the downside, watch for a move back down to $169. Below that opens up the potential for another test of $150. Below that technically puts the $130 March low in play, but let’s not get ahead of our skis.
Top Stock Trades for Tomorrow No. 2: Citigroup (C)
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As for Citigroup (NYSE:C), shares are down almost 4% after reporting its first-quarter earnings results. That’s more in-line with how its peers are trading at the moment.
The stock continues to get rejected from the $47.50 area, which was the low from the Q4 2018 selloff. That’s not a great sign for the bulls to be honest, but not all hope is lost.
Ideally, the stock will stay north of $140 and build out a longer term, less volatile base. That would be a constructive silver lining to the way shares have been trading lately. Below $140 opens the door to a retest of the $35 to $36 area.
On the upside, we need to see Citi clear $47.50. Above puts a run to $51 in play.
Top Stock Trades for Tomorrow No. 3: Roku (ROKU)
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Roku (NASDAQ:ROKU) continues to move really well, adding to Tuesday’s big gains with Wednesday’s rally, which came despite the decline in the broader market. Shares reclaimed and held the 50-day moving average and are making new highs on the week.
However, Roku could run into some resistance between $118 and $123. There it runs into prior multi-quarter support, as well as the 100-day and 200-day moving averages. Above this zone opens up the stock to a run to $130-plus.
A pullback likely puts the $100 level and the 50-day moving average back in play. From here, see that uptrend support (blue line) continues to act as support. If it fails, $80 is not out of the question, no matter how well this company is doing.
Top Stock Trades for Tomorrow No. 4: UnitedHealth (UNH)
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UnitedHealth Group (NYSE:UNH) is seeing a solid bounce after reporting earnings on Wednesday.
The move is catapulting UNH stock over a key resistance point near $265. That zone was multi-year resistance and clearing it gives the stock solid momentum. If it can continue higher, bulls will look for a test of $300 resistance. This is a level UnitedHealth could not break through in late-2019 and early 2020, despite trying multiple times over several months.
On the downside, look for UNH to hold $265 as support. Below puts $252 to $255 in play, where the stock will find its 50-week and 100-week moving averages. Below that and $230 is possible.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long ROKU and C.
