Tech continues to lag, as investors fish for a bottom in the Nasdaq. With that in mind, let’s look at a few top stock trades as we head into Friday.
Top Stock Trades for Tomorrow No. 1: Bitcoin (BTC-USD)
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Before the stock market opened on Thursday, investors had a different opportunity on their hands. Bitcoin (CCC:BTC-USD) traded lower, nearly dipping below $50,000 and tagged the 50-day moving average.
So far it’s bouncing and that’s a good sign for bulls. However, they’re not out of the woods just yet. They’ll need to see Bitcoin prices rotate higher. Preferably, it will also reclaim the 10-day and 21-day moving averages.
If it can do that, $58,000 is in play, followed by $60,000 and potentially new all-time highs.
A break of $50,000 on the downside likely puts the 10-week moving averages in play, along with the $46,000 to $48,000 area.
Top Stock Trades for Tomorrow No. 2: Carnival Cruise (CCL)
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Carnival Cruise (NYSE:CCL) has been an interesting trade lately. The stock continues to trade methodically between its retracement levels.
The 50% retracement acted as resistance earlier this month, as CCL stock could not push through $30. On the dip, we’re seeing support come into play at the 38.2% retracement. Also nearby are the 50-day and 10-week moving averages.
So, what now?
I’m watching for a rebound. If the stock can push through its short-term moving averages, see if it can retest recent resistance near the 50% retracement.
However, a move below Thursday’s low puts Carnival below a number of key levels and could put the 100-day moving average in play.
Top Stock Trades for Tomorrow No. 3: Darden Restaurants (DRI)
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Darden Restaurants (NYSE:DRI) is trading pretty well after earnings. I zoomed out the chart to show just how painful of a ride this one had in the first quarter of 2020.
With its slow but steady grind higher though, DRI stock continues to perform well for bulls who bought on that decline.
Bouncing off the 10-week moving averages now, Darden is reclaiming its key short-term moving averages. Next up is the current 52-week high near $148. Above puts the short-term 161.8% extension in play near $156.50.
A longer-term price target of $184 may be in play if Darden can keep chugging higher. On the downside, though, a break of this week’s low could put a retest of $124 in play, along with the 100-day moving average.
Top Trades for Tomorrow No. 4: Novavax (NVAX)
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Novavax (NASDAQ:NVAX) came under fire on Thursday, falling almost 11%. For now, shares are holding the 21-week and 100-day moving averages.
A break of Thursday’s low likely puts $150 in play, followed by $135. Be careful with this one, as it’s a wide-range mover.
Let’s see if we can get an inside “rest” day following Thursday’s action, giving us the potential for a daily-up rotation next week. On the upside, see how NVAX stock handles the 10-day moving average and the $200 mark — if it can make it that far.
Top Trades for Tomorrow No. 5: Baidu (BIDU)
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Baidu (NASDAQ:BIDU) stock has taken a swift blow over the last two days, down almost 22% during that stretch. Should it close lower this week, it will mark the stock’s fifth-straight weekly decline.
On the plus side, shares are pulling back into potential support from the 21-week and 100-day moving averages — although it’s not generating much of a bounce so far.
Use caution with this one as well. It’s tough in tech right now and Baidu isn’t an exception to that observation.
On a bounce, I want to see Baidu reclaim the $227 to $230 area. Above puts $250 in play. Below the $213.34 gap fill level could put $200 may be on the table.
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.
