The market was digesting Wednesday’s gain quite nicely on Thursday, until a tax headline spooked the algorithms and traders struggled to bid stocks back up. That said, let’s look at a few top stock trades after a slippery session and ahead of the last trading day of the week.
Top Stock Trades for Tomorrow No. 1: Tesla (TSLA)
Tesla (NASDAQ:TSLA) is making headlines over the supposed autonomous driving accident that occurred with no one in the driver’s seat. Regardless of its outcome, it’s hard to be bearish on Tesla over that regard.
There are reasons to be a seller of Tesla, but in my opinion, that is not one of them.
For now, the stock continues to hold up over that key $700 level we have highlighted several times. It also gave us a perfect gap fill up toward $781. It’s hard to complain about Tesla when it trades as well as it has.
From here, we want to see TSLA stock stay above this week’s low, at $691.80. Below that puts it below a key support level, as well as the 10-day, 21-day and 50-day moving averages.
It would put uptrend support in play, potentially followed by $600.
On the upside, however, let’s see if shares can push through $781.
Top Stock Trades for Tomorrow No. 2: Nio (NIO)
Nio (NYSE:NIO) has been pretty quiet lately.
Shares bounced nicely from the 200-day moving average and actually cleared downtrend resistance. However, Nio is struggling with $40, a key level over the last six months or so.
Over $40 and the 50-day moving average is possible, followed by the 50% and 61.8% retracements.
On the downside, though, keep an eye on the 200-day moving average. I don’t want to see Nio break below this level, but if it does, it could put the 2021 low in play at $31.91.
Top Stock Trades for Tomorrow No. 3: Bitcoin (BTC-USD)
Bitcoin (CCC:BTC-USD) has been all over the map. A few weeks ago, it made a nice push higher and last week, Bitcoin broke out over resistance and hit new all-time highs just shy of $65,000.
Then we saw a rapid unwind as Coinbase (NASDAQ:COIN) went public. Bitcoin is now down 19.6% from its high earlier this month.
Notice how the 50-day moving average went from support this year to resistance. This is a very important observation and it’s one investors need to make in other assets going forward.
The way Bitcoin plunged through this measure was the first warning. Now unable to reclaim it, it leaves the 10-week moving average as support.
Below that, and $50,350 is back in play. Below $50,000, and Bitcoin could see a real haircut. It could potentially put the $40,000 to $43,000 area in play. This was a prior breakout area and it’s also where the 21-week moving average comes into play.
Top Trades for Tomorrow No. 4: AT&T (T)
AT&T (NYSE:T) jumped as high as 5.9% on Thursday after reporting earnings. I have liked AT&T for awhile, even though the stock has been so sluggish. However, it’s trying to find some momentum.
To get that momentum, shares needed to clear the December and fourth-quarter high at $31.89. That was also today’s high, to give you some perspective.
Clearly that level is important to investors. A move over $32 opens the door to the post-coronavirus high at $33.24. Above that and we can see $35-plus.
On the downside, however, it’s mostly a story about $31.89. Below it, and AT&T can remain rangebound.
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.