The market’s strong finish on Wednesday carried over to Thursday’s session, with bulls buying the open and bidding up the market all morning. That said, let’s look at a few top stock trades going into Friday.
Top Stock Trades for Tomorrow No. 1: Cisco Systems (CSCO)
Cisco Systems (NASDAQ:CSCO) started off notably lower on the day, opening with some post-earnings losses on Thursday. However, shares have rallied off the lows and erased those losses.
So far, Cisco continues to find its pre-novel coronavirus 2020 high as support, at $50.31. The stock had a huge breakout over this mark earlier in the year and continues to hold it as support.
Amid the bounce, it also reclaimed the 10-day moving average. However, while it continues to find support, Cisco also continues to struggle with the $52 to $53 area.
If it can clear that measure, last week’s high of $54.14 is in play. Above that, and perhaps we can take a trip to multi-year highs near $58.
Top Stock Trades for Tomorrow No. 2: Lordstown Motors (RIDE)
Lordstown Motors (NASDAQ:RIDE) fell more than 15% in Thursday’s midday trading session. However, shares rallied more than 60% over the prior four days leading up to today’s action.
For now, the stock is struggling with the $11 level and the declining 50-day moving average. If it can clear this week’s high, the $12.80 measure is in play. Above $12.80 and perhaps RIDE stock can fill that small gap up toward $14.27.
If we get a real squeeze higher, the 21-week moving average and the $17 mark are possible.
On the downside, however, keep an eye on the 21-day moving average. A close below that could put a retest of the lows in play, near $6.75.
Top Stock Trades for Tomorrow No. 3: Kohl’s (KSS)
Kohl’s (NYSE:KSS) is getting hit on earnings, sinking 10% on the day. However, it’s also catching a decent bounce from the lows.
This one is a tricky but interesting one.
It’s got several notable support measures between $50 and $54. That includes the 21-week and 200-week moving averages, as well as the pre-coronavirus 2020 high.
As much as investors won’t want to risk $4 a share, it’s not absurd to be long against $50. On a break of $50, we have a problem and it could send Kohl’s stock down to the $42.50 level and the 200-day moving average.
On the upside, though, let’s see if can get a gap-fill back toward the 50-day moving average and the $60 area. Above that puts $62 to $63 resistance in play.
If we can get a breakout to occur, the 161.8% extension at $76.50 is a reasonable longer-term target, but we need to see the stock clear its current highs for that to happen.
Top Trades for Tomorrow No. 4: Deere (DE)
Last but certainly not least given its strength over the last few quarters, we have a pre-earnings look at Deere (NYSE:DE).
This stock has been on a heck of a run, but it’s been out of favor over the last few days, declining in its last four sessions and in seven of the last nine days.
Personally, I would love to see the stock open at (and hold) the 21-week moving average and reclaim the Thursday low. That would give investors a solid low to measure against on Friday morning after it reports earnings.
On a sustained move below the 21-week moving average, we could have a test of the $325 area. On a real pullback, the $305 mark could be tested.
As for the upside, look for a move back through recent support near $366. Back above it puts the 50-day moving average in play near $375, followed by recent resistance at $386.
Above all those marks and the highs near $400 are possible.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. 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.