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4 Top Stock Trades for Thursday: BABA, TAN, IWM, ACB

top stock trades - 4 Top Stock Trades for Thursday: BABA, TAN, IWM, ACB

As chaos ensues in Washington and as we wrap up the Senate vote in Georgia, the market is mixed as we head into Thursday. That said, let’s look at a few top stock trades. 

Top Stock Trades for Tomorrow No. 1: Alibaba (BABA)

top stock trades for BABA
Click to Enlarge
Source: Chart courtesy of TrendSpider

Concerns linger on Alibaba (NYSE:BABA) and whether the stock will be delisted by the NYSE, causing shares to slip lower on the day.

The stock previously caught a nice bounce off the $211 area. That bounced fizzled out north of $240 as shares again turned lower. Should Alibaba lose $225, it could open up another test of the $211 area.

There Alibaba finds the December low, 100-week moving average and 161.8% extension of the recent dip.

If that level fails, it could put the $188 to $196 area on the table, where the stock will find VWAP support and the 200-week moving average. The 50-month moving average also comes into play near $183 at the moment.

Top Stock Trades for Tomorrow No. 2: Invesco Solar ETF (TAN)

top stock trades for TAN
Click to Enlarge
Source: Chart courtesy of TrendSpider

The Invesco Solar ETF (NYSEARCA:TAN) has been raging higher. It’s working on its 10th-consecutive month of gains, and ended Wednesday up nearly 9% alone.

Let’s try to keep this one simple, because entering now would force bulls to adapt a very wide risk range. Meaning shares could give up a lot of ground and still be in a healthy state. 

If TAN takes out Wednesday’s high at $119.27, then look for a push to the 261.8% extension at $123.32. 

If it loses today’s low at $111.70, then let’s see if $108 and the 10-day moving average can support it. However, if not, true trend support could be on the table at the 10-week moving average, followed by the 50-day moving average. 

Top Stock Trades for Tomorrow No. 3: Small Caps (IWM)

top stock trades for IWM
Click to Enlarge
Source: Chart courtesy of TrendSpider

Obviously, Wednesday has been a wild day with what’s happening in Washington D.C.

However, small caps held up well all day. And despite the news, the Russell 2000 ended the day up about 4%.

The iShares Russell 2000 ETF (NYSEARCA:IWM) gapped up and hit new all-time highs on the day. Like the rest of the market though, it has backed off those highs by the close.

Keep an eye on $199. If it loses this mark, a return to the 21-day moving average is likely. Below that, and the $185 to $188 area is on the table.

If it can take out this weeks’ high, look for an eventual push to the 161.8% extension.

Over the last three months, the Russell is up 30%. The next best performer is the Nasdaq Composite, up 13%. The Russell is the clear relative strength leader, so keep that in mind moving forward.

Top Trades for Tomorrow No. 4: Aurora Cannabis (ACB)

top stock trades for ACB
Click to Enlarge
Source: Chart courtesy of TrendSpider

Aurora Cannabis (NYSE:ACB) and the rest of the cannabis space caught a big boost on Wednesday. However, the stock is struggling to hold onto its gains.

ACB stock gapped up, opening over $11 per share. While it cleared the 50-week moving average initially, it did not close above it. So now, investors must be on the lookout for a test of the $9.50 area.

There it will find the 10-day, 21-day and 200-day moving averages, as well as VWAP support. A break below puts the December low in play near $8.20.

If ACB stock can reclaim the 50-week moving average and take out Wednesday’s high, it puts the December high in play at $12.19 — followed by the November high near $14.50.

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.

Article printed from InvestorPlace Media, https://investorplace.com/2021/01/4-top-stock-trades-for-thursday-baba-tan-iwm-acb/.

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