Bulls had to fight through some early volatility on Wednesday, but they were able to stem the bleeding and prevent a notable loss on the day. That said, let’s look at a few top stock trades for Thursday.
Top Stock Trades for Tomorrow No. 1: Aphria (APHA)
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Aphria (NASDAQ:APHA) and Tilray (NASDAQ:TLRY) have been losing their minds, figuratively of course. The stocks have been explosive movers, rallying sharply over the last few days and weeks.
I outlined the recent consolidation in the stock. While the 161.8% extension near $31 was a possible upside target, I did not think the stock would get there this fast, if it got there at all.
Hitting this level now, APHA stock is being rejected. If it can clear $31, let’s see if $37 is possible, which is roughly the two-times range extension.
Should shares eventually pull back, let’s see if the prior high near $20 can buoy APHA stock. Below likely puts the 10-week moving average in play.
Top Stock Trades for Tomorrow No. 2: Ayro Inc. (AYRO)
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Ayro Inc (NASDAQ:AYRO) has been a big mover lately too. However, its rally right into the prior 52-week high is rejecting the stock so far.
The time to buy really was the breakout over $7.50 to $8. That put the January high and the 61.8% retracement in play, with the potential for a move up toward $10.
Now, we have to see what comes next. If Ayro can take out $10.60, then perhaps it can extend up toward $12.50, where it finds the 138.2% extension. If gets there, it will open up even higher extensions and we’ll have to revisit it.
On the downside, however, let’s see if the 61.8% retracement can buoy the name. Below puts the 10-day and 21-day moving averages in play.
Top Stock Trades for Tomorrow No. 3: Coca-Cola (KO)
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There is no crystal ball or holy grail in trading — trust me. However, Coca-Cola (NYSE:KO) highlights the impact that Fibonacci retracements and extensions can have on a stock.
After reporting earnings, Coca-Cola was rejected by the 100-day moving average. But it was also rejected by the 61.8% retracement.
Furthermore, notice how at the beginning of the year the stock was rejected by the 78.6% retracement. When it retreated, it found support at the 50% retracement. Let’s continue to use these as our guide.
Buyers may likely step in around $48. If this level fails though, perhaps $45 could be in play. On the upside, a move through $51 could put $55 on the table.
Top Trades for Tomorrow No. 4: Lordstown Motors (RIDE)
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Lordstown Motors (NASDAQ:RIDE) has been trading really well lately, giving bulls an ascending triangle look.
That’s where rising uptrend support continues to run into a static level of resistance. In this case, resistance comes into play between $30 to $32.
Despite the strength on Wednesday, investors have to use some caution here. Why? Because the stock could pull back to support and still be in a healthy setup.
On a dip, look for support between the 10-day and 21-day moving averages. An overshoot of these marks could put $24.50 in play, another possible support zone.
On the upside, though, clearing $31.80 could trigger a larger breakout. If it sticks (meaning it’s not a false breakout), look for a possible move into the mid- to upper-$30s. The 138.2% extension sits near $39 if it can really gain some momentum.
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.
