The S&P 500 hit another new all-time high on Wednesday as bank stocks kicked off earnings season. However, the index reversed and moved lower on the day, as it has been getting a bit extended. That said, let’s look at a few top stock trades for Thursday.
Top Stock Trades for Tomorrow No. 1: Goldman Sachs (GS)
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Goldman Sachs (NYSE:GS) was one three banks to report earnings on Wednesday morning. Atypical to the normal reaction — which is a higher open and a “sell-the-news” reaction — GS stock opened lower on the day and popped higher in the first few minutes of trading.
The stock temporarily traded down into key support, that being the 10-week and 50-day moving averages. From there, it reclaimed the 10-day and 21-day moving averages, as well as the last few weeks’ worth of resistance.
If shares take out the post-earnings high near $344.50, the all-time high near $357 could be in play, followed by the two-times range extension near $360.
On the downside, however, bulls must continue to find trend support that’s in play. Below $325 is not a positive development.
Top Stock Trades for Tomorrow No. 2: Dogecoin (DOGE-USD)
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Dogecoin (CCC:DOGE-USD) exploded higher on Wednesday, as Coinbase Global (NASDAQ:COIN) made its public debut via a direct listing.
The crypto impressively pushed through resistance near 8.8 cents on Tuesday, then ripped higher on Wednesday. Amid the move, Dogecoin tagged its two-times range extension near 13.4 cents.
It’s now situated between its 161.8% and two-times range extensions. Let’s use these two measures are our lines in the sand. Below the 161.8% extension and Dogecoin could pull back, potentially down to 10 cents.
Above the two-times range extension (and thus the high) and 15 cents is possible, followed by the 261.8% extension near 16.3 cents.
Top Stock Trades for Tomorrow No. 3: Marathon Digital (MARA)
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Bitcoin (CCC:BTC-USD) is also in focus amid the Coinbase debut, which in turn has stocks like Marathon Digital (NASDAQ:MARA) in focus. The stock is ripping below several key measures on the day.
Those include the prior highs near $50, the breakout level near $46 and the 10-day and 21-day moving averages.
From here, I either want to see MARA stock reclaim all of these marks or correct further. If it reclaims $50 (and thus all the aforementioned levels) then it puts the recent high in play at $57.75. That’s followed by a possible push to the 161.8% extension at $65.
If MARA stock corrects further, though, look for support between $38.50 and $39.75. There the stock finds its 61.8% retracement and 10-week and 50-day moving averages.
That could be a reasonable buy-the-dip level provided Bitcoin also finds a bid. However, if Bitcoin starts to slip, so too will Marathon Digital.
Top Trades for Tomorrow No. 4: Palantir Technologies (PLTR)
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Palantir Technologies (NYSE:PLTR) was harshly rejected by the 50-day and 100-day moving averages, as it tries to hold its shorter-term moving averages.
If the stock fails to hold these measures — the 10-day and 21-day moving averages — then we could easily see PLTR stock revisit the $21 area. That zone has been pretty solid support dating all the way back to November.
On the upside, we ultimately need to see PLTR stock push through all of its moving averages, putting $27.50, then $30 in play.
For reference, that $27.50 mark is near the March high. That may or may not come into play depending on when PLTR stock can find its footing in the next two weeks. It’s still early in the month, but for now, we have an inside month brewing, which is also worth keeping an eye on.
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.
