The market put together a decent rebound on the day, although it was a somewhat sleepy session with relatively muted breadth. Let’s look at a few top stock trades for Friday.
Top Stock Trades for Tomorrow No. 1: Box (BOX)
Box (NYSE:BOX) was slugged on Thursday, sinking almost 13% at one point. However, notice just how well this stock trades on a technical basis.
After breaking out over its former high at $22.09, shares climbed right to the 161.8% extension at $26.43 before pulling back. While it was riding the 10-day moving average higher, today’s gap-down action sent it right back toward $21 and the 10-week moving average.
After a quick bounce, shares are trying to move back over $22.
If Box takes out Thursday high at $22.61, look to see if it can reclaim the 10-day moving average and fill the gap. Below $21 puts the 50-day moving average in play.
Top Stock Trades for Tomorrow No. 2: Constellation Brands (STZ)
Constellation Brands (NYSE:STZ) took a slight dip on earnings, down about 4.5% at the time of this writing. Now we’re sort of stuck in no man’s land here.
Shares are being rejected by the 10-week and 50-day moving averages. However, support is coming from the 100-day and 21-week moving averages.
On the upside, I’m looking for a move above Thursday’s high — at $226.77 — to get us a potential gap-fill up toward $233.70. If bulls regain control, recent resistance at $236.70 could be on the table.
On the downside, a close below $220 could turn the 100-day and 21-week moving averages into resistance, opening the door to $210 or lower.
Top Stock Trades for Tomorrow No. 3: Alibaba (BABA)
While mega-cap tech stocks are finding a nice bid, Alibaba (NYSE:BABA) continues to struggle. Shares continue to find support at the 21-week moving average, but bulls aren’t bidding this one up with enthusiasm.
Alibaba tried to go weekly-up over $232.38, but couldn’t maintain momentum. If it can do so on Friday or give bulls a two-times weekly-up rotation (next week) by clearing this week’s and last week’s high, then look for a quick move to the 10-week moving average.
That’s a nimble trade, but if bulls push it through this mark, look for a rally to the $250 area and the 50-day moving average. Above could put the February gap-fill in play near $262.50.
On the downside, a move below the 100-day moving average puts $212 back in play, followed by $200 and the 200-day moving average.
Top Trades for Tomorrow No. 4: Bed Bath & Beyond (BBBY)
Bed Bath & Beyond (NASDAQ:BBBY) is threatening a weekly-up rotation, as it flirts with a move over last week’s high at $30.14.
A close above that could kickstart a pre-earnings rally, with earnings scheduled for April 14. On an upside move, the $33 to $35 zone could be in play. Above that and who knows, perhaps BBBY stock could really take off once again.
On the downside, a weekly-down rotation and close below the 10-week moving average could set a negative tone for BBBY.
Top Trades for Tomorrow No. 5: Apple (AAPL)
Keep an eye on Apple (NASDAQ:AAPL). The stock has been a big under-performer, but is finding its stride lately.
Shares gave bulls a monthly-up rotation on Thursday, clearing $128.72. Apple is also clearing all of its moving averages on multiple timeframes.
On a dip, I want to see it hold last month’s high, as well as the $126.75 level. As long as it holds that range — $126.75 to $128.75 — I view it as bullish and will look for a pre-earnings rally.
On the upside, I’m focused on $138, a key level since the stock made its September high. Below $124.66 and Apple loses almost all of its attractive qualities from a trading perspective.
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.