We had a lot to digest on Wednesday, including a CPI reading and an auction of 10-year Treasury bonds. While not typically important events, the market’s latest worry over rates and inflation made these two events key today. So, as we approach a notable expiration week, let’s look at some top stock trades.
Top Stock Trades for Tomorrow No. 1: Boeing (BA)
Boeing (NYSE:BA) is a name we’ve been stalking for a while now and covered a few times in Top Stock Trades. It’s just gotten caught up in this choppy tape we’ve had, giving false moves both higher and lower.
We’re finally getting a clear push higher in this one.
Now clearing the December high, I want to see if Boeing can get to $250. Not only is this level psychologically relevant, but it’s also the 61.8% retracement and the gap-fill from a year ago.
Above that could open the door to the 200-week moving average and 78.6% retracement.
On the downside, however, I want to see the 21-day moving average continue to act as support.
Top Stock Trades for Tomorrow No. 2: DraftKings (DKNG)
DraftKings (NASDAQ:DKNG) continues to trade really well. After excellent earnings, it seems like it was one of the few tech stocks to actually rally on its results.
However, those gains were cut short after volatility picked up in growth stocks. This sent DKNG stock back down to the $56.75 area and the 50-day moving average. Both levels wavered, but ultimately held as support.
On the rotation back up, shares are now back to $70. From here, let’s see if DKNG stock can avoid a lower high and retest the 161.8% extension of the short-term range. Above could open the door to the longer-term 161.8% extension up near $82.
On the downside, though, a break of the 10-day and 21-day moving averages puts the 50-day back in play. Remember, this one can be a wild mover.
Top Stock Trades for Tomorrow No. 3: Campbell Soup (CPB)
Campbell Soup (NYSE:CPB) is not your typical trading vehicle, it’s more of a slow-moving dividend stock. However, it gave a great opportunity this morning.
Here’s a reminder to use different timeframes when looking for prospective trades, be it the daily, weekly or four-hour chart.
Shares opened slightly lower on earnings — which put it in the spotlight a bit — and quickly traded lower. However, the stock found its footing at the 200-week moving average and $45 level, just as it has many times before. This quickly sent the stock higher by $3 per share.
Now, boring or not, $3 per share for a $45 stock isn’t a bad move for one day’s worth of work. And overall, DKNG stock gained 11.4% on the day.
From here, let’s see if it can clear the 200-day moving average. Above puts $50 and the 61.8% retracement in play.
Top Trades for Tomorrow No. 4: Oracle (ORCL)
Speaking of earnings, Oracle (NYSE:ORCL) is due to report on Wednesday evening. Shares have quietly done really well lately.
After reversing back above $62 and reclaiming its 10-day, 21-day and 50-day moving averages in a single session, Oracle was able to regain momentum in late February.
Since then it’s been riding its 10-day moving average higher, slowing at each key Fibonacci extension — specifically the 161.8% and two-times range extensions.
A dip back to the 10-day here wouldn’t be unhealthy price action in the least bit. If it does that and holds as support, bulls may be inclined to buy the dip. On the upside, however, a move over $73.50 could set the stage for a push toward $80, then eventually the 261.8% extension.
That said, let’s see how it trades after earnings.
On the date of publication, Bret Kenwell held a long position in DKNG.