It was a volatile session in the stock market on Thursday, although bulls repaired some of the damage that stocks observed in the morning. With that in mind, let’s look at a few top stock trades.
Top Stock Trades for Tomorrow No. 1: Roku (ROKU)
This is a somewhat loaded Top Stock Trades, starting with a favorite among investors: Roku (NASDAQ:ROKU).
Shares burst higher, ripping nearly 12% on the day. It vaulted shares over $135 resistance and more importantly, ended its painful stretch of lower highs, dating back almost a year.
The stock is approaching the 78.6% retracement and the 2020 high near $151. Above that puts the Q4 high in play at $168.85, followed by the all-time high at $176.55. Just for those that are curious, a breakout over the all-time high could put $200 in play, with the 123.6% extension up at $204.48.
Top Stock Trades for Tomorrow No. 2: Advanced Micro Devices (AMD)
Despite a bumpy overall market on Thursday, Advanced Micro Devices (NASDAQ:AMD) also made a powerful move higher.
Shares had been hugging the 20-day and 50-day moving averages, and I was looking for this level to give way just earlier this week. It did so in a powerful manner, with AMD also clearing downtrend resistance (blue line).
Now the $58 to $59 area looms large, as it has been resistance all throughout 2020. Above $59.27 puts the stock in breakout mode, and puts the 123.6% extension in play near $64.50.
On the downside, though, I need to see the 50-day moving average hold as support. Below is not a good development for bulls. Below $54.45 — the 78.6% retracement — will have me cautious.
Top Stock Trades for Tomorrow No. 3: Virgin Galactic (SPCE)
With today’s upside move, shares are clearing downtrend resistance (blue line) and are rotating over last month’s high at $18.70. Ideally, this $18.70 level will hold as support and put $20-plus in play.
Above $20 puts the 38.2% retracement in play at $31.83. Below, however, puts the 50-day moving average back in play at $16.50, technically speaking.
Below $14 is a very bad look for SPCE, as it puts it at multi-month lows and below a number of key support levels.
Top Trades for Tomorrow No. 4: Walgreens (WBA)
Walgreens Boots Alliance (NASDAQ:WBA) continues to trade poorly, as the stock hits its lowest levels since May. Poor earnings are the culprit for Thursday’s action, but the bearish trend has been in play for a while now.
Just look at the weekly chart here, which highlights the lower highs WBA has been making for years now. Even more recently, shares were rejected from the $47.50 level, a significant support level from 2019. That’s a very bearish development.
It doesn’t help that WBA has been unable to reclaim the 20-week moving average, which has been squeezing the share price lower.
From here, see if WBA can close above the 20-week moving average. Otherwise, it keeps the 52-week low in play at $36.24.
Top Trades for Tomorrow No. 5: Bed Bath & Beyond (BBBY)
Doing worse than Walgreens is Bed Bath & Beyond (NASDAQ:BBBY), which ended the day down 24.5%.
The move thrusts shares below the 20-day moving average and uptrend support (blue line), as shares teeter on the 50-day moving average and as the 200-day moving average is cemented as resistance.
If shares fail to hold the 50-day moving average, see if the 23.6% retracement acts as support. Below is a no-touch in my view. And if either hold as support, see if BBBY can retest the 200-day moving average.