5 Top Stock Trades for Thursday: SNAP, PFE, WKHS, BOX, SPOT

top stock trades - 5 Top Stock Trades for Thursday: SNAP, PFE, WKHS, BOX, SPOT

There were some solid moves in the stock market on Wednesday, despite the overall indices looking pretty muted. That said, let’s turn our attention to some top stock trades for Thursday.

Top Stock Trades for Tomorrow No. 1: Snap (SNAP)

top stock trades for SNAP
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Source: Chart courtesy of StockCharts.com

We have remained pretty bullish on Snap (NYSE:SNAP), simply because it hasn’t done anything wrong on the technical side. This is a huge lesson for patience.

While Snap may fail to rotate over last week’s highs near $47.25, look at how well it has been trading.

For the last few days it’s been bouncing hard off the 10-day moving average, showing that bulls remain in control. In early Wednesday trading, Snap rotated over yesterday’s high, then it rotated over the prior high for the last five sessions.

Now it’s trading up into the weekly high. Above that opens the door to $50. On the downside, though, this name just needs to hold $43.75 on a closing basis.

Top Stock Trades for Tomorrow No. 2: Pfizer (PFE)

top stock trades for PFE
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Source: Chart courtesy of StockCharts.com

Pfizer (NYSE:PFE) spiked last month on vaccine optimism, but then quickly sold lower. Now, it’s taking out those highs and rallying to new 2020 highs.

So, what do we want to see now?

Obviously it would be great to see Pfizer continue higher. If it can, bulls are likely eying the $44.50 area, where it will find the 161.8% extension. However, it may need to rest before powering up to that zone — if it can at all.

Ideally, this stock will hold up over the $39 to $40 area. It’s not the end of the world if it goes back to $37, which it really needs to hold, but it will be constructive price action if it does.

Top Stock Trades for Tomorrow No. 3: Workhorse (WKHS)

top stock trades for WKHS
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Source: Chart courtesy of StockCharts.com

Workhorse (NASDAQ:WKHS) was slugged on the day, down 19 on the day.

Amid the gap down, shares lost the 20-day and 50-day moving averages. From here, we’re kind of in no man’s land.

If WKHS stock can’t reclaim these key moving averages, it could put $15 in play. That’s particularly possible if it can’t hold the 100-day moving average at $20.40. Below $15 could usher in a test of the 200-day moving average.

On the upside, however, look to see if WKHS stock can fill the gap up toward $25 — if it can reclaim the 50-day moving average.

Top Trades for Tomorrow No. 4: Box (BOX)

top stock trades for BOX
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Source: Chart courtesy of StockCharts.com

Box (NYSE:BOX) is not looking healthy after reporting earnings, down about 8.8%.

The bigger problem is that it’s failing to hold a number of key support levels. Specifically, Box tried to rally off the key $17 mark, as well as the 50-day and 200-day moving averages. It failed, evidenced by the long “wick” on the chart.

Below these key figures and it’s hard to be bullish on this name. It leaves shares vulnerable to a dip to the November low near $15.

If the stock can reclaim all of these marks and close above them, then it opens the door to the post-earnings high at $17.74, followed by a potential gap fill toward $18.50.

Top Trades for Tomorrow No. 5: Spotify (SPOT)

top stock trades for SPOT
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Source: Chart courtesy of StockCharts.com

Unlike the last couple of names we discussed, Spotify (NYSE:SPOT) is having itself a big day, up more than 12% and hitting new highs.

The stock has been consolidating since June, a bullish digestion that allowed for the powerful move to the upside. Now we need to see these gains hold.

On the downside, I don’t want to see Spotify lose its prior all-time high near $300.

On the upside, though, let’s see if shares can take out Wednesday’s high near $331. If it can, it could put the 161.8% extension in play near $348.50. That extension measures from the September low to the July high.

On the date of publication, Bret Kenwell held a long position in SNAP.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.

Article printed from InvestorPlace Media, https://investorplace.com/2020/12/5-top-stock-trades-for-thursday-snap-pfe-wkhs-box-spot/.

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