Stocks continue to churn near all-time highs, as investors cautiously look to push equities. There’s a hesitancy in both directions, with bulls seemingly holding off on a robust push higher, but also showing willingness to buy most of the dips. Let’s look at a few top stock trades.
Top Stock Trades for Tomorrow No. 1: Twilio (TWLO)
Twilio (NYSE:TWLO) will report earnings after the close. For now, shares continue to find support at prior resistance, which comes into play near $400.
The stock is enduring a two-day dip, unwinding some notable gains in the process. That said, this name has been on fire over the past few quarters. If bulls bid it up after earnings, look for Twilio to take out the recent high and tag the 161.8% extension near $450.
Above that mark and the two-times range extension is in play near $480.
Should Twilio break below $400 and lose the 21-day moving average, bulls will be looking for support at the 50-day moving average. A break of that could put the 100-day moving average in play, which has been strong support, as well as the $330 area.
Top Stock Trades for Tomorrow No. 2: Bitcoin Cash (BCH-USD)
On Tuesday I covered Bitcoin (CCC:BTC-USD), but today I want to look at Bitcoin Cash (CCC:BCH-USD).
We just saw a potent rally in this crypto too, with shares erupting over the recent high at $633. Now consolidating its gains with back-to-back inside days (where the entire range of the candle is within the range of the preceding candle), bulls are looking for more upside follow-through.
If Bitcoin Cash can take out the current high, look for a push to the 161.8% extension near $800, then potentially a test of the two-times range extension and $900.
On the downside, however, we need to see the 10-day moving average continue to act as support. Below could put sub-$600 on the table.
Top Stock Trades for Tomorrow No. 3: Wingstop (WING)
Wingstop (NASDAQ:WING) is gapping down hard and heavy on Wednesday, down more than 13% on the day. However, support is coming into play right where it should.
Specifically, the 100-day and 200-day moving averages are holding strong, as is uptrend support (blue line). Should WING stock close below Wednesday’s low, then bulls may have a problem.
In that scenario, it could put the January low in play near $129, and potentially more losses below that.
Should support hold, we need to see a rebound back over the 50-day moving average. If we get it, look for a retest of the 21-day moving average, then a potential gap-fill back toward $165.
Top Trades for Tomorrow No. 4: Hilton (HLT)
Is Hilton (NYSE:HLT) setting up for a big-time breakout? If the vaccine propels the travel industry back onto its feet the way bulls are hoping, this name and its peers could have a lot of upside.
Specifically with HLT stock, look at the way shares are bubbling below $115.50. With earnings out of the way and bulls bidding the name up off the 50-day moving average, a breakout could be looming.
This resistance mark goes all the way back to first quarter 2020. A break above it could put the $125 area in play, which is near the 161.8% extension from the recent range.
If resistance holds firm, look to see that the post-earnings low holds as support. Below could put the 100-day moving average and $100 mark in play.
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.