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)
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)
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)
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)
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.