After several strong rallies, the stock market cooled a bit on Thursday. That didn’t stop some stocks from being big movers, though. With all of that in mind, let’s look at a few top stock trades for Friday.
Top Stock Trades for Tomorrow No. 1: American Airlines (AAL)
American Airlines (NASDAQ:AAL) just went bananas on Thursday, exploding higher by more than 40% as of this writing. On the move, shares burst right through the 23.6% retracement.
As AAL stock climbs, shares are approaching the 100-day moving average. That comes into play at $17.
If American Airlines can clear this level, it puts the $20 level on watch. There it will find the 38.2% retracement. Above that, and AAL stock may rally up to the 200-day moving average — currently near $22.50.
On a decline, though, I want to see the 23.6% retracement hold as support.
Top Stock Trades for Tomorrow No. 2: Spirits Airlines (SAVE)
Spirit Airlines (NYSE:SAVE) has also been impressive, almost tripling off the lows less than a month ago.
Earlier this week, SAVE cleared the 23.6% retracement, as uptrend support (blue line) continues to drive it higher. Now, SAVE stock is approaching a critical level near $22.50.
Near this mark, shares find the 100-day moving average and 38.2% retracement. If I’ve been long from sub-$10, I would be taking at least some profits into this zone. On a pullback, however, see that uptrend support holds as support. Below puts the 23.6% retracement, as well as the 20-day and 50-day moving averages in play.
Top Stock Trades for Tomorrow No. 3: Alibaba (BABA)
Alibaba (NYSE:BABA) has been ripping back to life, bouncing hard off the 200-day moving average after a post-earnings shake-out late last month.
After holding the 50-day moving average, shares reclaimed the 20-day moving average and jumped higher. That rally has sent Alibaba stock into $220 resistance and the 78.6% retracement near $218.
This puts the stock in an interesting position. If shares pull back, I want to see the 20-day and 50-day moving averages hold as support. While the setup is still okay on a slightly deeper dip, it would be more bullish to see these marks hold as support.
On a breakout, though, let’s see if Alibaba can rally up to the prior highs near $230.
Top Trades for Tomorrow No. 4: Dave & Buster’s (PLAY)
Now near $20, PLAY has been a four-bagger, as it hits its highest level in almost three months. Shares are breaching the 38.2% retracement on Thursday, putting the 100-day moving average in play near $24. Perhaps most impressive is the volume over the past two days.
On the downside, however, I want to see the 20-day and 50-day moving averages hold as support. Below that, and the 23.6% retracement is possible.
Top Trades for Tomorrow No. 5: Broadcom (AVGO)
It took awhile, but Broadcom (NASDAQ:AVGO) finally came back to life. Last week, AVGO broke out over resistance and the 200-day moving average. Shares then consolidated, and rallied over $300.
With earnings on deck, Broadcom is at an interesting juncture. I want to see either a breakout or a pullback, and it doesn’t matter which.
On a dip, look to see if AVGO holds support near the 200-day moving average and the $275 area. Below puts the 50-day moving average in play.
On the upside, I want to see a rally up to $320. If AVGO clears this mark, it must close above it as well. Otherwise, it may still act as resistance.