It was another tough day for growth-stock investors, with the market for these stocks continuing to swoon. That said, let’s look at a few top stock trades for Wednesday.
Top Stock Trades for Tomorrow No. 1: Boeing (BA)
Boeing (NYSE:BA) has blasted back to relevancy over the past two trading sessions.
Despite dipping from Tuesday’s high, Boeing is now up 19.6% so far this week. Monday’s rally finally broke Boeing out of its painful downward channel. Tuesday’s rally is sending the stock north of the 200-day moving average.
Boeing briefly took out its third-quarter high from August, but is currently below that mark now.
If it can clear that level (at about $190), then it puts the June high on the table near $234. Above that, and a gap-fill toward $255 is possible. On the downside, though, watch for a close back below the 200-day moving average.
In that event, Boeing could retest the backside of prior channel resistance (blue line).
Top Stock Trades for Tomorrow No. 2: Nautilus (NLS)
This name has been incredible. Nautilus (NYSE:NLS) was trading against $4 resistance in the pre-coronavirus days before plunging to a low of $1.20 in March.
Eventually, traders caught on that the workout-from-home theme was alive and well, ultimately bidding the stock up toward $28 earlier this month.
At the current low, shares were down an astounding 28% from last week’s high. Now that’s volatility. The thing is though, shares are still up more than, 1,300% from the lows. So, we’re at this interesting juncture where NLS can fall 40% to 50% from its high and still be a 10-bagger from March.
For now, buyers keep stepping in below $20 and are trying to keep NLS above the 50-day moving average. If they do and buyers come back to growth stocks, look for NLS to fill the gap back up toward $28.
If they can’t save NLS and other growth stocks, a test of $16 and the 100-day moving average could be on deck.
Top Stock Trades for Tomorrow No. 3: Alibaba (BABA)
Alibaba (NYSE:BABA) has not had an easy couple of weeks. Despite a steady rise coming into November, earnings and Single’s Day are not acting as the catalysts investors were hoping for.
Instead, shares are gapping below last week’s lows and knifing through the 100-day moving average. It’s not a good look for bulls.
However, the stock is finding support in this $265 area, which was resistance in July and August, but support in September. A break below this level could put the $240 area and the 200-day moving average on the table.
On the upside, I want to see BABA reclaim the 100-day — and soon.
If it remains below it, however, Tuesday’s low remains vulnerable. Back above it and $280-plus is in play. Above $280, and look for Alibaba to fill the gap back up toward the 50-day moving average.
Top Trades for Tomorrow No. 4: Lyft (LYFT)
Lyft (NASDAQ:LYFT) stock has been trading incredibly well lately, but the move has been fast and furious.
10 trading days ago, Lyft made a low of $21.34. Currently, it’s trying to push through $37.50. And with earnings on deck, it leaves investors in a tough spot in the short term.
Ultimately, if it loses this week’s low near $35, look for support to come into play near $31.50 to $32.50. Not only has this zone been significant over the past few months, but the 10-day and 200-day moving averages are also nearby. Holding this level bodes well for bulls, in my opinion.
On the upside, let’s see if Lyft can take out this week’s high and clear $40. Above $40 puts the June high in play at $41.19.
On the date of publication, Bret Kenwell held a long position in NLS.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.