After a strong bounce last week, we’ve had a very quiet couple of days in the market this week. In fact, we seem to be on autopilot, with the S&P 500 just drifting horizontally. Now, let’s look at a few top stock trades heading into the holiday weekend.
Top Stock Trades for Tomorrow No. 1: AMC Entertainment (AMC)
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AMC Entertainment (NYSE:AMC) gave bulls an absolutely gift going into the weekend. So much of a gift that perhaps they can even take Friday off and enjoy an extra long weekend.
As I detailed a few days ago, AMC stock gave bulls a perfect pullback. The stock couldn’t push through the 61.8% retracement and pulled back to the April high and the 10-day moving average.
After a sharp bounce, AMC stock rallied through resistance and exploded toward the January high near $20 on Wednesday. On Thursday, the top really blew off, with AMC surging 52% to the 161.8% extension before backing off a bit. This is a perfect area to book some or all profits.
If shares continue higher, look for a move over $30. The two-times range extension is near $35 and the 261.8% extension is near $45.
On the downside, let’s see if it can hold $20 and/or the 10-day moving average as support.
Top Stock Trades for Tomorrow No. 2: Nvidia (NVDA)
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Nvidia (NASDAQ:NVDA) is having a very quiet post-earnings reaction. Hovering near $620 now, we have to wait for a bit more direction with this one.
On a dip, I’d love to see how Nvidia does on a test of the 10-day moving average on the four-hour chart. Below puts the 10-day moving average in play on the daily chart. If the sellers really step up, perhaps the 21-day moving average, $590 level and gap-fill are all in play. That would be a reasonable buy-the-dip spot after another strong quarter report.
On the upside, keep an eye on this week’s high at $632.74. Above that puts the all-time high in play near $648.50, followed by the 161.8% near $668.
Top Stock Trades for Tomorrow No. 3: Best Buy (BBY)
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Best Buy (NYSE:BBY) is also having a pretty quiet post-earnings reaction on Thursday. The stock was up earlier in the session, but has since faded from those highs. And BBY stock finished the day up just 1%.
The stock continues to struggle with the $123 area. This has been resistance for several quarters now.
That said, BBY stock continues to hold the 10-day, 21-day and 50-day moving averages on the downside. So support keeps coming into play, which is a good sign.
If support fails, look for a flush down to the 200-day moving average. This measure was support earlier in the month. If the stock clears $123 resistance, it puts the 52-week high in play near $128.50. Above that could put the two-times range extension on the table, near $133.
Top Trades for Tomorrow No. 4: Rocket Companies (RKT)
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Don’t you love when a stock reacts to one of your previously drawn-in chart levels? That’s exactly what we had with Rocket Companies (NYSE:RKT) on Thursday.
Shares erupted higher over the prior low at $17.50, as well as the 10-day moving average. For a moment, the stock even reclaimed the 21-day moving average.
However, it ran right into prior support near $19.40 and was harshly rejected, falling about $1 per share. If it can clear this level, then that puts $20-plus in play. Specifically, it puts the 50-day moving average on the table, followed by the 200-day and the gap-fill mark at $22.67.
On the downside, a break of $17.50 puts the low back in play at $16.22.
On the date of publication, Bret Kenwell held a long position in NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
