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)
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)
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)
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)
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.