What can we say? The stock market is still trying to work out what direction it wants to go in. As novel coronavirus cases continue to ratchet higher and as post-election dramatics play out, investors are struggling to commit to a direction. Let’s look at a few top stock trades for Friday.
Top Stock Trades for Tomorrow No. 1: DraftKings (DKNG)
Shares continued to grind lower, slicing through the 50-day moving average. Finally, the stock bottomed near $35, breaking out of its falling wedge pattern (blue lines). Now, it will report earnings on Friday.
On the downside, I prefer shares don’t break $37.50. Below could put $35 back in play, followed by the 20-day moving average near $31.50.
On the upside, though, bulls want to see a close above $45 and the 50-day moving average. Above opens the door to $50-plus, potentially putting a gap-fill up near $56 in play.
Top Stock Trades for Tomorrow No. 2: Piedmont Lithium (PLL)
Piedmont Lithium (NASDAQ:PLL) rallied more than 16% at one point today. Shares caught a big lift as the stock look to be moving to an “expansion” phase from its “contraction” phase.
With a two-times weekly-up rotation, shares are gaining momentum. However, shares topped out at $28.70. For the fireworks to really get started, we need a move over $30. That could put $37 in play in a hurry.
On the downside, however, a move back below $26 puts the 20-day moving average in play. Below that will put $22 support and the 50-day moving average on the table.
Top Stock Trades for Tomorrow No. 3: Fastly (FSLY)
Fastly (NYSE:FSLY) traded well on Thursday, ending the day up nearly 6% despite the gyrations in the overall market.
With the rally, Fastly is reclaiming the 20-day moving average, as well as prior range support. That is key for me, as regaining support is pivotal to keeping bulls in control.
A rotation back below $73 puts uptrend support in play (blue line), followed by the recent lows near $65. Ultimately, shares could test down to the 200-day moving average should they fail to hold range support and the $65 area.
On the flip side, FSLY all but filled the gap from Oct. 23, leaving some to question the stock’s latest rally despite it reclaiming several key marks. It remains a “prove it” stock as a result.
If it can indeed prove it, bulls will soon be looking for a rally up to the 50-day moving average. Above puts the post-plunge highs in play near $95.
Top Stock Trades for Tomorrow No. 4: GrowGeneration (GRWG)
GrowGeneration (NASDAQ:GRWG) is also showing a ton of relative strength on the day, up more than 16% at the end of Thursday. Plus, it’s forging its way to new highs.
By rallying over $125, the stock cleared its 123.6% extension — as measured from the September low to the August high — and its prior high.
If GRWG stock can maintain momentum, the 161.8% could be in play near $29.
On the downside, though, I want to see GRWG stock maintain above the $23 level, the August blowout high. Below puts the 20-day moving average back in play, followed by the 50-day moving average and uptrend support (blue line).
On the date of publication, Bret Kenwell held a long position in DKNG.