The market remain menacing for short-term traders, as it continues its choppy price action. With lots of Fed speakers and the end of the quarter nearing, there’s reason for the chop. That said, let’s look at a few top stock trades for Thursday.
Top Stock Trades for Tomorrow No. 1: Adobe (ADBE)
Adobe Systems (NASDAQ:ADBE) hasn’t given bulls much to work with and it doesn’t look like earnings are going to change that.
The stock was rejected by its 50-day and 10-week moving averages, but is holding the 10-day and 21-day moving averages, along with the $455 level. We need more clarity.
Either a close below Wednesday’s low or above this week’s high — and thus, clearing all of the levels it’s stuck between, either to the upside or downside — gets us that clarity. Below $450 puts lower prices in play, potentially all the way down to $425.
Above last week’s high puts $475-plus in play, although Adobe will likely need tech stocks to start trading better before that happens.
Top Stock Trades for Tomorrow No. 2: Tesla (TSLA)
Tesla (NASDAQ:TSLA) still doesn’t look healthy. Now keep in mind, I’m not a raging Tesla bear or anything like that. For all we know, this stock is only going to give shorts a frustrating consolidation period of six to 12 months, just like FAANG has been doing.
Notice this last rebound and how it failed at numerous key moving averages. The key moving average that turned from support to main resistance is the 10-week.
While this mark buoyed Tesla in February, it has rejected it for weeks now. Keep an eye on this level on the upside. Above opens up a potential rally beyond $700. On the downside, however, watch last week’s low near $624.50.
A close below that mark puts $600 in play, followed by the March lows. Below that puts the 200-day moving average in play and the $500 breakout level.
Top Stock Trades for Tomorrow No. 3: General Mills (GIS)
Like Adobe, General Mills (NYSE:GIS) also isn’t giving investors much to work with on earnings.
The stock tried to rally but was rejected by the 50-week moving average. So far, though, a handful of moving averages are supporting it on the downside.
This one is simpler. Keep an eye on last week’s high at $60.43. A daily close above that mark not only gives us a weekly-up rotation, but puts GIS stock above the key 50-week moving average. It could even put the $65 level in play.
On the downside, though, a break of this week’s low is not good — putting the 100-week moving average and potentially the $55 area in play.
Top Trades for Tomorrow No. 4: Winnebago (WGO)
Winnebago (NYSE:WGO) is giving investors its fifth-straight daily decline after reporting earnings before the open.
As dicey as the market has been lately, WGO stock actually seems pretty attractive right here. Why? Well not only is the stock declining to its 50-day and 10-week moving averages, but it’s also dipping back into its prior high near $72.50.
Of course, a break of this area is possible and puts sub-$70 in play. However, the risk-reward isn’t bad.
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.