After shaking the tree a bit on Wednesday, neither bulls or bears gained much traction on Thursday. That said, let’s look at a few top stock trades, which made the market look a bit more exciting on the day.
Top Stock Trades for Tomorrow No. 1: Snap (SNAP)
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I just can’t help but keep coming back to this one — Snap (NYSE:SNAP) has been the gift that keeps on giving.
Let’s outline this as a learning lesson. I’m also here to remind you that, if you’re trading Snap or others that have been nice winners, remember to take some profit and raise your stop-loss, if those two actions fit your strategy. There is nothing like watching a big winner evaporate before your eyes.
I have been bullish on this one for a while, but the real confirmation came when Snap gapped up over $44 resistance in late November, then held this mark as support.
Then, shares went weekly up over $47.50 and did the same thing — held prior resistance as support.
Now, shares are moving firmly above $50. Can it get to $55 and change? If it can, that is the four-times range extension from the March low to the preceding 2020 high. Cheers.
Top Stock Trades for Tomorrow No. 2: Twitter (TWTR)
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Helping drive the move in Snap? News with Twitter (NYSE:TWTR), which is sending the latter higher by almost 8.5%.
Shares have now filled that nasty gap from October, although the stock is now struggling with the 161.8% extension. If it can clear this area, look for it to retest the 2020 high near $53.
Above puts the two-times range extension on the table at $59.28.
On the downside, however, if Twitter loses $50, see if support comes into play at recent resistance near $48 to $48.50. Below could put the 50-day moving average in play.
Top Stock Trades for Tomorrow No. 3: Dave & Buster’s (PLAY)
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Dave & Buster’s (NASDAQ:PLAY) has been such a solid rebound play from the lows just below $5. It will now see if it can continue the momentum when it reports earnings after the close.
On the upside, see if shares can take out resistance near $27.50. This has been in play a few times now since early November.
Above $27.50, and the 61.8% retracement could be in play near $32. Above that, and investors may look to eventually squeeze PLAY stock stock up to the 78.6% retracement at $39.34.
On the downside, though, a rotation below the recent 21-day moving average support and the December low at $24.05 puts $20 in play, along with the 50-day moving average. Below that, and PLAY stock could fill its November gap and test the 100-day moving average and uptrend support (blue line).
Top Trades for Tomorrow No. 4: Lemonade (LMND)
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Lemonade (NYSE:LMND) was another recent trade highlighted in top stock trades. Earlier this month, the stock gave us a weekly- and monthly-up rotation as it cleared $77.49.
Since then, this stock has been a lightning rod. Shares are fading hard off the day’s highs, but if it holds up over its prior highs near $96, then bulls can maintain control. If they can do so, look for a move back over $100 and potentially back to the highs near $112.
Below $96, and look for a test of the two-day low near $84 to $85, as well as the 10-day moving average. Below could put the 20-day moving average in play, which has been support.
Top Trades for Tomorrow No. 5: Ciena (CIEN)
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Ciena (NYSE:CIEN) has been a somewhat wild post-earnings mover on Thursday.
Bulls who really love this name have a nice reversal low to measure against. Below and the 50-day moving average is close by, followed by the key $42 area. Below all of these marks, and Ciena stock could revisit the $38 to $39 area.
Is it a horrible long setup? Not necessarily. However, I would like this name a lot more if it could rotate through some key areas and prove itself.
For example, look at the difference it would make if CIEN stock cleared $49. That puts it at multi-month highs and above recent resistance. It also puts it above the 50-day, 100-day and 200-day moving averages.
The best part is, it would begin filling in this massive gap up toward $58.50. In that scenario, it would a lot of room ahead of it with a reasonable risk point to measure against, which is the most important part. But that all starts with clearing $48.75 to $49.
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.
