4 Top Stock Trades for Friday: QCOM, DKNG, SOLO, SNAP

top stock trades - 4 Top Stock Trades for Friday: QCOM, DKNG, SOLO, SNAP

The bulls just keep on driving stocks higher. Amid the four-day run, the Russell 2000 hit a new all-time high on Thursday. With all of that in mind, let’s look at a few top stock trades for Friday.

Top Stock Trades for Tomorrow No. 1: Qualcomm (QCOM)

top stock trades for QCOM
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Source: Chart courtesy of TrendSpider

Qualcomm (NASDAQ:QCOM) is not trading well after reporting earnings, but let’s keep in mind how well the stock has done leading up to the report.

Shares bottomed at $58 in the first quarter of 2020 and nearly hit $168 on Wednesday. Now retreating, we have to see how the stock situates on Friday.

Ideally, bulls will get a stronger bounce off the lows and reclaim the 10-week moving average. If it can do that, then the $158 level will be in play, followed potentially by $168, which has been been clear resistance over the prior three weeks.

However, if the stock can’t reclaim the 10-week moving average, bulls may want to be a bit more cautious until we get a daily close back above that mark. Below Thursday’s low of $145.20 could put the 21-week moving average in play.

Top Stock Trades for Tomorrow No. 2: DraftKings (DKNG)

top stock trades for DKNG
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Source: Chart courtesy of TrendSpider

DraftKings (NASDAQ:DKNG) went on a punishing decline in October, falling more than 45% from peak to trough. That happened inside of a month, without a daily loss exceeding 7.5%.

What does that matter? In the grand scheme of things, it doesn’t, but for those that were long, it was a very painful grind lower.

In any regard, DraftKings is rallying toward its 52-week high at $63.78 ahead of Super Bowl Sunday. Let’s see if the stock can take out this level and extend its run into the $60s.

Longer term, a larger breakout could send DKNG stock past $70.

On a dip, though, I want to see the stock hold above the 10-day moving average. Below will put $56 back in play. This was a clear breakout area. Should this level of resistance hold as support on a dip, that bodes well for the bulls.

Top Stock Trades for Tomorrow No. 3: Electrameccanica Vehicles (SOLO)

top stock trades for SOLO
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Source: Chart courtesy of TrendSpider

Electrameccanica Vehicles (NASDAQ:SOLO) is finally starting to perk up as well. Shares ended Thursday up 16%, and are beginning to clear the previous month’s high.

In fact, it’s rotating over the December and January highs. If we can get an extension off of this mark, it opens up more upside.

Specifically, the 50% retracement sits at $9.70, while the 61.8% retracement is up at $10.62. Above both, and a move up toward the prior high at $13.60 is possible.

What if we don’t get a rotation and the $9 level rejects SOLO stock? Then look to the 10-day moving average for short-term support. Below puts the 50-day moving average in play, which buoyed the share price nicely this week.

Top Stock Trades for Tomorrow No. 4: Snap (SNAP)

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

It’s been a busy week for earnings and Snap (NYSE:SNAP) reported its results after the close.

The stock has had a lot of pre-earnings momentum, with shares up about 22% from last week’s low, even though Snap is down on the day.

If we get a pullback in the stock, look for the 10-day moving average and $55 level to act as support. The latter was prior resistance and to see it act as support would be a bullish development.

A close below $55 puts the 50-day moving average in play, followed by $48.

On the upside, look for a move to the 161.8% extension near $63. Above that puts the $66.50 area in play, followed potentially by the 261.8% extension near $72.

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

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


Article printed from InvestorPlace Media, https://investorplace.com/2021/02/4-top-stock-trades-for-friday-qcom-dkng-solo-snap/.

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