Wednesday’s action resulted in a sharp decline and that selling pressure followed through to Thursday morning. However, bulls bid the market up off the lows, as we are now just a few trading sessions away from closing the books on the second quarter. With all of that in mind, let’s look at a few top stock trades.
Top Stock Trades for Tomorrow No. 1: Square (SQ)
Square (NYSE:SQ) tends to be a crowd favorite, and with its latest rally bulls are quite excited.
Shares continue to hold up over the $100 mark. Not only is this level psychologically important, but it’s where the 123.6% extension comes into play. If the stock can continue to hold this mark and consolidate, it increases the odds that higher prices could be on the way.
Specifically, the 138.2% extension is one possible upside target, currently at $108.23. Long-term investors may be looking for an eventual move to the 161.8% extension, up near $121.
If $100 fails as support, first look for a drop to the 20-day moving average. Below puts the $85 breakout zone in play.
Top Stock Trades for Tomorrow No. 2: Inovio (INO)
Did Inovio Pharmaceuticals (NASDAQ:INO) explode or what? The stock has about doubled in the last three days and ended Thursday up more than 30%.
The first day of the rally was an impressive one, as INO stock cleared $16 resistance and topped the March high near $19. On Thursday — the third day of the rally — Inovio stock took out the 161.8% extension.
At this point, I would be looking to book some or all profit from this move. Those who prefer to book just some of their profits, consider seeing if INO stock can stay above the 161.8% extension, at $28.15.
On the upside, look for the two-times range at $33.59.
Top Stock Trades for Tomorrow No. 3: McCormick (MKC)
McCormick (NYSE:MKC) is grilling up some gains on Thursday, up 3.6%. (Don’t worry, I promise not to drop another lame pun).
While not a monstrous move on a percentage basis, the stock is trying to break out to new highs. Shares did technically hit new highs, but the stock needs to close above $180 to really get going.
MKC is above all of its major moving averages and the trend is moving in the right direction. I like this name over $180, particularly as we are in the summer grilling season. A breakout over $180 could put the 123.6% extension in play, up at $188.51.
If McCormick can’t break out, look to see that uptrend support (blue line) and the 50-day moving average buoy the stock. Below puts the 200-day moving average in play.
Top Stock Trades for Tomorrow No. 4: Sorrento (SRNE)
Sorrento Therapeutics (NASDAQ:SRNE) got off to an explosive start on Thursday. After climbing 8.6% on Wednesday, SRNE gapped higher by 14% on Thursday, running those gains to as high as 29.9% at one point.
However, the $6.50 to $6.80 zone remains resistance, denying SRNE even after it temporarily pushed through this area. This remains the upside target area, followed by the 61.8% retracement at $7.64, then the 78.6% retracement at $8.68.
It would be a shame to see SRNE pull all the way back to $5, but if it does, it must hold this key breakout level as support. Below would put $4 or lower in play.