It was another quiet session the stock market on Thursday, with the indices simply treading water ahead of the long holiday weekend. That said, let’s look at a few top stock trades for Thursday.
Top Stock Trades for Tomorrow No. 1: Ford (F)
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Ford (NYSE:F) stock has been trading really well the last few weeks. I have said it before, but the pullback looked really constructive to me.
Shares found support around $11.25 and the 21-week moving average, consolidating the big gains from the last several quarters. With last week’s action, shares erupted over the 10-week moving average and downtrend resistance (blue line).
With this week’s move, shares cleared the 2018 high at $13.50. That move opens up the 161.8% extension on the upside near $15. If it can hold up over the $13 to $13.50 area, bulls can continue to push it higher.
On a dip, let’s see if the 10-week moving average acts as support.
Top Stock Trades for Tomorrow No. 2: Nike (NKE)
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Like Ford, Nike (NYSE:NKE) has been consolidating for most of 2021. In the fourth quarter, shares broke out over $130 and ran to almost $150.
On a pullback, the stock has held the $130 area and the 10-month moving average. However, the rebound has been stymied by the 21-week moving average.
Now shares are trying to rotate over last week’s high near $137.50. If it can do that, let’s see if Nike can close the week above the 21-week moving average and push above $140 into downtrend resistance (blue line). Above downtrend resistance puts the $145 to $147 zone in play. If we can get a continued push higher, perhaps we’ll see a breakout over $150.
On the downside, though, a loss of this week’s low could put $130 back in play, along with the 10-month and 50-week moving averages.
Top Stock Trades for Tomorrow No. 3: Zscaler (ZS)
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Zscaler (NASDAQ:ZS) is enjoying a great day, ripping more than 12% on better-than-expected earnings. There’s just one problem: The $200 level.
Shares gapped up and rallied right into April highs near $200. The question is, will ZS stock give bulls a monthly-up rotation over the prior month’s high or will it again act as resistance?
The current layout could set us up for a two-times monthly-up rotation in June. If it can’t break above this level, we may see the stock retreat lower, potentially putting the 50-day moving average in play.
Above $200 could open up the stock to an eventual rebound to the $225 area. If it loses too much momentum on the downside, ZS stock could fill a bulk of the gap.
Top Trades for Tomorrow No. 4: Wynn Resorts (WYNN)
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Look at the setup we’ve got going in Wynn Resorts (NASDAQ:WYNN). Shares continued to hold the 21-week moving average, then this week’s strong rotation gave bulls something to feast on.
Specifically, Wynn gave bulls a multi-week rotation higher, cleared the 200-week and 10-week moving averages and hurdled downtrend resistance.
Perhaps this rotation fizzles out, but it’s not hard to imagine a rally up to the $140 to $143 area. Above that could put the $150 to $155 area in play.
On the downside, however, a move below $120 could put a test of the 10-month moving average in play.
On the date of publication, Bret Kenwell held a long position in WYNN. 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.
