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)
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)
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)
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)
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)
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.