Despite record jobless claims north of 6.6 million, the stock market held up on Thursday. Let’s look at a few top stock trades, which had more volatility than the market would have made you think.
Top Stock Trades for Friday No. 1: Facebook (FB)
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Like many other stocks, as well as the overall market, Facebook (NASDAQ:FB) put together a solid bounce from its March lows. Shares rallied from approximately $140 to $170 in just a few weeks.
Since then though, shares are being rejected by the 20-day moving average and $170 level. The stock is now pulling back, as investors try to gauge just how far this stock will decline.
Will shares find their footing between $150 and $155, or will we get a retest of the lows?
At this point, all we know are the levels. Below $155 and $145 is in play, with the lows on the table below that. Above the 20-day moving average would be a bullish development. It will also put $170 back in play. Above that and perhaps shares can add to the momentum, potentially running up to $185 and/or the 50-day moving average.
Keep it simple: watch the 20-day moving average on the upside and $150 to $155 on the downside.
Top Stock Trades for Friday No. 2: Luckin Coffee (LK)
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Traders woke up to plenty of shock on Thursday. Luckin Coffee (NASDAQ:LK) was plunging more than 80% in pre-market trading after acknowledging accounting irregularities.
Shares closed north of $26 on Wednesday and were trading for sub-$4 in Thursday’s pre-market trading session.
From here, many will consider it a no-touch, and who can blame them? Below $5 is a concern. On the upside, watch for a move over Thursday high, at $10.58.
Top Stock Trades for Friday No. 3: Walgreens (WBA)
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Walgreens (NASDAQ:WBA) shares fell to new 52-week lows on Thursday after disappointing quarterly results. Of all the companies out there that are still doing well, Walgreens isn’t one of them.
For that reason, it’s a hard stock to buy right now. If anything, I’d be looking at WBA stock as a short candidate, provided the stock gets a bounce up to $47.50 and fails to reclaim this level.
Otherwise, we need to give it more time to establish a low. So far, we don’t know where that is, and thus, it’s hard to take a long position in the name. Let’s see if the stock can reclaim prior downtrend support (blue line), and gain some upward momentum.
Top Trades for Friday No. 4: Zoom Video (ZM)
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Zoom Video (NASDAQ:ZM) put in a bearish topping candle on Monday. That’s where the stock opened north of $160 and tried to take out the all-time high from March, but was met by sellers instead.
Shares put in an ugly red candle and have embarked on a notable pullback since. The $115 level has brought in some temporary buyers. That level is roughly the 50% retracement from the post-earnings low in December.
Now bulls need to see if this low sticks. If it does, see if shares can reclaim the $125 level (which happens to be the 61.8% retracement from the same range as above) and the 20-day moving average currently near $129.
A break below Thursday’s low puts the 50-day moving average in play, followed by the $100 to $105 zone. Below all of these levels puts the 200-day moving average and $90 on the table.
Top Stock for Friday No. 5: Simon Property Group (SPG)
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News for this mall operator just hasn’t been good. Lockdowns, store closures and tenants not paying rent has all been bad news for the best-in-class Simon Property Group (NYSE:SPG).
While shares posted a notable rebound — going from $45 to $65 in just a few days — the stock is now back down to new lows. It’s too early to pick a bottom here. Plain and simple.
If the current dip is somewhat shallow, see if SPG stock can reclaim $45. That may give investors a chance to see a rally up to $55, with a limited-risk approach, depending on where the low ends up being.
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.
