After a rough open on the downside, equities coasted higher throughout Thursday’s trading session. That said, here’s a look at a few top stock trades amid a busy earnings week.
Top Stock Trades for Tomorrow No. 1: Apple (AAPL)
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Apple (NASDAQ:AAPL) is set to report earnings after the close on Thursday. It will be joined by some other big-hitters in tech, including: Facebook (NASDAQ:FB), Amazon (NASDAQ:AMZN) and Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG).
Last week, shares broke below multi-month uptrend support (blue line). The decline came right after a rally up into the 161.8% extension and near $400. Really, that was a good area for traders to take some profit.
On the rebound, Apple has been struggling with the 20-day moving average, but is currently pushing through this mark now.
On a rally, I want to see how the stock does with the $400 level and $161.8% extension — in other words, prior resistance. If it can close above this area and continue higher, it puts the two-times range extension in play up near $440.
On the downside, though, I want to see if the $355 to $360 area can act as support. There, Apple finds the rising 50-day moving average and the July low. Below $350 could cause some additional selling pressure.
Top Stock Trades for Tomorrow No. 2: Qualcomm (QCOM)
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Qualcomm (NASDAQ:QCOM) initially traded lower right after reporting earnings, but has since seen a surge on Thursday. The stock ended the day up more than 15%, and is vaulting to new 52-week highs.
The move broke QCOM stock out over long-term resistance at $95 and the stock quickly rallied through the 123.6% near $103.
Now what? I would love to see QCOM consolidate its gains above $100. A move below $100 puts a retest of $95 support in play. On the upside, a move to the $117.50 area seems possible over the longer term, which is the 161.8% extension. To get there, though, QCOM will need to clear and hold the 138.2% extension near $109.
Top Stock Trades for Tomorrow No. 3: MasterCard (MA)
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MasterCard (NYSE:MA) is roughly flat after reporting earnings. It’s not quite the fireworks reaction we’re getting out of some other names, but the credit card company is holding its own.
Shares continue to put in a series of higher lows and are holding up over the 20-day, 50-day and 200-day moving averages.
Now that the stock didn’t go down on earnings, the question is, can it go up? If it does, see that it clears $315 resistance. Above might just get a rally going and send MA up toward a gap-fill around $335.
On the downside, however, I’d love a potential buying opportunity near $290 and the 200-day moving average. Below puts a gap-fill possibility in play near $278.
Top Stock Trades for Tomorrow No. 4: Procter & Gamble (PG)
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Slow and steady has been the name of the game for Procter & Gamble (NYSE:PG). Ahead of earnings, this name was able to breakout through $125 resistance and hit new highs. After earnings, the gains just keep coming.
Now becoming overbought, let’s see if PG can climb to the 123.6% extension at $134.28. Above could trigger more upside, potentially to the 138.2% extension near $139. Remember, one step at a time, though. So, let’s start with the 123.6%.
On a move below $130, P&G could fill the gap down toward $127.50. Below that and PG may retest its $125 breakout level and/or the 20-day moving average.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret is long some AAPL.
