After a solid finish to Wednesday’s session, the stock market struggled on Thursday. Despite that, the trends remain in place, even as rates continue higher. Let’s look at a few top stock trades for Friday — a quadruple witching day.
Top Stock Trades for Tomorrow No. 1: Nike (NKE)
Nike (NYSE:NKE) is set to report earnings after the close. While the stock has done well, consider the tailwinds. Not only has its business been going pretty well — all things considered — it’s got a reopening economy ahead of it. Remember, this time last year the economy was shutting down.
On the chart, Nike stock has been consolidating in an established range, between $130 on the downside and $147 on the upside. Hovering near the latter now, bulls are looking for an upside breakout.
If they get it, see how Nike handles $150. Above it could put the 161.8% extension in play near $160.
On the downside, a close below the 100-day moving average may put range support in play near $130. In the event that the market is under pressure and Nike has a bearish post-earnings reaction, the 200-day moving average could be in the cards down the road.
Top Stock Trades for Tomorrow No. 2: Dollar General (DG)
Dollar General (NYSE:DG) reported earnings on Thursday and is giving us a bearish reaction. Although, it’s not exactly the end of the world.
Shares are bouncing notably off this month’s low and the 100-week moving average. We are now a bit in no man’s land here. DG is perched between the post-earnings low and the gap-fill up near $187.
Above the post-earnings high (which is Thursday’s high, at $181.55) and perhaps the stock can fill the gap. However, above that mark are too many declining moving averages to have confidence in a high-conviction long play at this time.
On the downside, A close below $172.50 puts $167 in play.
Top Stock Trades for Tomorrow No. 3: CrowdStrike (CRWD)
CrowdStrike (NASDAQ:CRWD) gave investors a modest post-earnings rally on Wednesday, but completely fell apart on Thursday.
While the 21-week moving average has been holding as support, the 21-day moving average rejected the stock. After failing to reclaim the latter, the stock is now breaking below the former.
A close below the 100-day moving average could put last week’s low in play near $179, followed by the March low all the way down near $170.
If the 100-day moving average holds as support, look for shares to reclaim the 21-day moving average, then push toward the $215 to $220 area. Over $220 and CrowdStrike can really start to fly, although that doesn’t seem too likely in the short term.
Top Trades for Tomorrow No. 4: Nautilus (NLS)
Nautilus (NYSE:NLS) finally broke out over the $27.50 to $28 area in February, then plunged after earnings later in the month. It’s been chopping around below several key moving averages since.
For each of the last four days, NLS has been contending with its 21-day, 21-week and 100-day moving averages, failing to reclaim them all week. Moving lower now, shares are under pressure and failing to hold $20.
The stock looks like it’s heading for the $17.50 to $17.75 area, where it finds range support and the 200-day moving average. Below could put the December low back in play near $16.15.
On the upside, shares need to reclaim $20. However, the party can’t really start until NLS clears that cluster of moving averages on the upside.
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.