4 Top Stock Trades for Thursday: LOW, TGT, MRNA, MCK

top stock trades - 4 Top Stock Trades for Thursday: LOW, TGT, MRNA, MCK

After a steep selloff on Tuesday, equities rebounded with aggression on Wednesday. With that in mind, let’s look at a few top stock trades.

Top Stock Trades for Tomorrow No. 1: Lowe’s (LOW)

Lowe’s (NYSE:LOW) initially opened higher on the day and looked like it was headed back to its highs on better-than-expected earnings.

However, shares are now flushing lower on Wednesday. The stock is down almost 1% as of this writing. It leaves LOW stock in an interesting spot now.

On a slightly deeper decline today, it could put in a bearish engulfing pattern and risk breaking below $116. Below this short-term support level puts the $108 to $110 area in play. There it will find uptrend support, along with the 20-day and 200-day moving averages.

If shares hold support or reverse higher, look to see if LOW can rally up to $125 resistance. Above could trigger a breakout.

Top Stock Trades for Tomorrow No. 2: Target (TGT)

top stock trades for TGT

Like Lowe’s, Target (NYSE:TGT) stock is also in decline after reporting earnings. This stock has been in a strong uptrend, so while shares are under pressure, investors will be surely looking to buy the dip. That is, provided that the overall market isn’t getting slaughtered.

For TGT, I am looking for a dip into the $115.50 to $117.50 area. There it finds several different layers of support, including the rising 20-day moving average. If Target reclaims $125, look for a push up into the $128 to $130 area, where it may sniff out new highs.

Below $115.50 could put the 200-day moving average in play just below $110. Below that and $100 to $105 could be in play.

Top Stock Trades for Tomorrow No. 3: Moderna (MRNA)

Moderna (NASDAQ:MRNA) has been awfully volatile lately. At the beginning of the week, MRNA was north of $85. This morning it was below $70.

Last week’s high-and-tight flag broke to the upside, and now MRNA found support right in that former resistance area. It also filled the gap.

Now things get a little tricker. I would be cautious on a break of Tuesday’s low and Wednesday open. In other words, roughly $70. On a move higher, look to see if MRNA can clear $75. Above puts $77.20 in play, then $79.52.

Above that, and $82.81 is the next target (the 78.6% retracement of this week’s move), followed by the high near $87.

Top Trades for Tomorrow No. 4: McKesson (MCK)

Like others named above, McKesson (NYSE:MCK) has backed off its post-earnings highs considerably.

On Monday, shares made a beautiful breakout higher. It cleared downtrend resistance (blue line) and reclaimed the 200-day moving average. That followed last week’s reversal (purple arrow) and the reclaiming of its 50-day moving average.

If shares can hold up over $140, bulls can stay long with confidence. Below puts a gap-fill in play toward $136.

On a push higher, see if MCK can rally back up to resistance near $152.50. Above that and shares can begin to break out to the upside. In that case, see if it can rally back toward $159. There it will fill the February gap and get back to the 78.6% retracement.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, he did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2020/05/4-top-stock-trades-for-thursday-low-tgt-mrna-mck/.

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