Another day, another session with new all-time highs. However, it wasn’t a robust rally in the markets on Thursday. Instead, it was a rather quiet session. That said, let’s look at a few top stock trades as we near the end of the trading week.
Top Stock Trades for Tomorrow No. 1: United Continental (UAL)
United Continental (NASDAQ:UAL) shares are moving lower after reporting earnings, breaking support in the process.
This isn’t necessarily a nail in the coffin, but bulls are officially without momentum unless they can regain some of these key levels. As you can see on the chart above, the stock is cleanly losing the 50-day moving average, while the 10-day and 21-day moving averages are crossing below the 50-day.
That’s not a great look and may have lower prices in play. If that’s the case, look to see if the 50-week and 200-day moving averages between $36 and $38 can act as support.
Back above $45 put $49 to $50 in play. Above the December high, and the 50% retracement is possible near $54.
Top Stock Trades for Tomorrow No. 2: FuelCell Energy (FCEL)
FuelCell Energy (NASDAQ:FCEL) is also having some post-earnings volatility, but the stock is responding to support at its 10-day moving average.
Granted, it initially broke below this mark, but it’s all about the close and this one is looking better at the end of the day than at the beginning.
From here (either on Friday or next week), let’s see if FCEL can take out this week’s high at $18.32. Above puts the 261.8% extension in play at $20, followed by the 2021 high at $20.94.
On the downside, however, a break of Thursday’s low could put last week’s low in play near $14, as well as the 21-day moving average.
Top Stock Trades for Tomorrow No. 3: Union Pacific (UNP)
What an ugly candle we’re all staring at here with Union Pacific (NYSE:UNP).
The stock opened lower after reporting earnings, rallied all the way back up to about even on the day, then got slammed lower. It’s only down about 4.7% on the day, but it’s not a great look.
On the plus side, support may be nearby. The 10-week and 50-day moving averages sit between $206 and $207.50. I want to see this level hold, then for shares to reclaim the $211 breakout area.
A reclaim of $211 and investors will want to see if UNP stock can get back up to $220. If support fails, look for a gap fill toward $194, followed by a possible retest of the $189 breakout level and the 200-day moving average.
Top Trades for Tomorrow No. 4: Schlumberger (SLB)
Schlumberger (NYSE:SLB) has been looking much better lately, but slipped lower on Thursday. That’s ahead of the company’s earnings report on Friday.
The move sent shares below the 10-day moving average, as the $23.50 breakout level and 21-day moving average are now the must-hold mark for bulls.
On a rebound, bulls want to see shares reclaim the $25 level, then test the 50% retracement level near $26.50. This level was resistance earlier this month. Above it could put the 100-week moving average in play near $28.50, followed eventually by the 61.8% retracement near $30.
On the downside, though, a loss of the $23.50 level will quickly put the 10-week and 50-day moving averages on the table near $22 to $22.50. Below puts $21.25 on deck. That level was resistance in August and support in December.
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.