After falling in three-straight sessions despite new all-time highs on Monday, equities found their footing and rallied on Thursday. Will the momentum last into the weekend or is it just a dead-cat bounce? With all of that in mind, let’s look at some top stock trades for Friday.
Top Stock Trades for Tomorrow No. 1: Tesla (TSLA)
Tesla (NASDAQ:TSLA) has been stalling lately, working on its fourth-straight daily decline and its eighth decline in the past nine trading sessions. CEO Elon Musk’s comments toward Bitcoin (CCC:BTC-USD) don’t seem to be helping either.
In any regard, shares are breaking below this week’s low, as well as the 200-day moving average.
This would be a natural spot for bulls to push for a reversal and given the bounce we’re seeing from the lows, it’s clear that’s what they’re trying to do. If they can, look for Tesla to reclaim the 200-day moving average.
Confirmation would come on a daily-up reversal over Thursday’s high.
If they can’t trigger a reversal, Tesla may need to go lower. In that case, let’s see if we get a test of the March lows near $539 and a test of the 50-week moving average. If that doesn’t provide a bounce, the $500 breakout area may be in play.
Top Stock Trades for Tomorrow No. 2: AMD (AMD)
Advanced Micro Devices (NASDAQ:AMD) continues to do well from a business standpoint, but unfortunately, nobody really cares about that right now. AMD is considered a growth stock, and growth stocks are getting slammed.
Shares are testing into — and are actually breaking below — range support near $74. I would love to see the stock hold this mark by the end of the week. If it doesn’t, it runs the risk of becoming resistance.
A notable move lower could put the 21-week moving average in play. On a rebound back over $74, look for AMD stock to test into the 10-week moving average, then challenge $80.
Above all of these marks puts $87 on the table.
Top Stock Trades for Tomorrow No. 3: Canada Goose (GOOS)
Canada Goose (NYSE:GOOS) is getting hit hard on Thursday, down almost 9% after reporting earnings. The stock has faded below a number of key moving averages and knifed right through its 21-week moving average on the day.
However, it’s finding buyers at the April lows. If this area ends up holding, I want to see GOOS stock reclaim its 21-week moving average. If it can do that, buyers can consider a long position against the post-earnings low.
Back above $40 and its 10-week and 50-day moving averages are some reasonable upside targets.
However, if Canada Goose fails to hold the April low and pushes lower, the gap-fill near $36 and the 200-day moving average may be in the cards. Stay nimble and remain open-minded here.
Top Trades for Tomorrow No. 4: Sonos (SONO)
Sonos (NASDAQ:SONO) is also on the move after earnings, up more than 7% on the day. However, it’s been a wild mover on Thursday.
There’s good and bad with this chart. For instance, the stock filled its gap at $32.88 earlier this week. However, it then broke below that low with Wednesday’s decline.
But then on Thursday shares went daily-up and undid a lot of damage. Then the stock faded from the highs, though.
Like I said, it’s a mixed bag here.
On the plus side, the stock is well off the lows. Unfortunately, though, Thursday’s fade came from a notable area. Specifically, the $35 area continues to act as resistance, while the 21-week moving average didn’t do SONO stock any favors. This area was also strong support earlier this year and it was the breakdown spot this week.
I want to see Sonos reclaim $35 before trusting on the long side. If it does, we have a nice low to measure against.
If the stock doesn’t reclaim $35 and breaks that low, it could put another gap-fill in play near $28, followed by the 200-day moving average.
On the date of publication, Bret Kenwell held a long position in AMD. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.