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)
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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)
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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)
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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)
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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)
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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.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
