Okay, who was looking for the 3.9% pop in the Nasdaq on Wednesday? I suspect not many, as the election results continue to trickle in. That said, let’s look at a few top stock trades for Thursday.
Top Stock Trades for Tomorrow No. 1: Biogen (BIIB)
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Biogen (NASDAQ:BIIB) shares ripped higher on Wednesday, climbing more than 40% at one point in the session. Positive news surrounding its Alzheimer drug was the catalyst.
Although the stock made some major moves — like clearing wedge resistance, as well as its 10-week, 20-week, 50-week and 200-week moving averages — it continues to struggle with the $360 to $370 area.
This level has been resistance for years, including earlier in 2020 too.
If Biogen can rotate over this year’s high near $375, it opens the door to the $400 mark and the 123.6% retracement near $406.
Top Stock Trades for Tomorrow No. 2: Peloton (PTON)
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Peloton (NASDAQ:PTON) has become a Wall Street darling, roaring higher throughout 2020. Can it continue its momentum when it reports earnings on Thursday after the close?
Luckily for bulls, this one has been pulling back. Nothing is harder than when a red-hot stock screams higher into earnings. The stock has been undergoing a very orderly pullback for weeks now, with support coming into play at $110.
From here, bulls are looking for a larger dip to buy or a breakout to regain momentum.
If it’s the former, look for a decline to channel support and the 50-day moving average. An overshoot could land Peloton near the demand zone (support), between $95 and $100.
If it’s a bullish reaction, though, look for PTON to break out of the channel and reclaim the 20-day moving average. Over $125 and the $140 highs may be possible.
Top Stock Trades for Tomorrow No. 3: General Motors (GM)
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General Motors (NYSE:GM) will also report earnings on Thursday, but will do so before the open.
This will be a very interesting earnings report, even though GM doesn’t exactly command the attention that Tesla (NASDAQ:TSLA) does.
In October, GM finally broke out over the 200-week moving average. This mark had been notable support for years before turning into resistance earlier this year. Back above it now, bulls need to see this mark act as support should GM decline on Thursday.
Below the 200-week moving average puts $32 back on the table, followed potentially by a test of the 50-week moving average.
On the upside, it would be bullish to see a rotation over last month’s high near $38, putting $40-plus in play.
Top Stock Trades for Tomorrow No. 4: Wendy’s (WEN)
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With all of the election news, it was easy to overlook the fact that Wendy’s (NASDAQ:WEN) reported earnings on Wednesday morning.
This slow but steady name has been holding above the 200-day moving average for months now. That said, it’s been mostly trading in a sideway pattern.
If this name loses $21.50 support, the 200-day moving average and is back in play. A close below the September low at $20.23 gives bears even more momentum.
Bulls can’t regain momentum with shares below the 50-day and 100-day moving averages. A push back through that mark puts downtrend resistance in play. If Wendy’s can close above this mark, a rotation up through $23.50 is possible — this month’s high so far — followed by a possible rally up toward $25.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in any of the securities mentioned in this article.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
