After a couple of solid days for the market, the S&P 500 took a rest on Tuesday. The index spent most of the day hovering around flat for the session. Let’s look at a few top stock trades for Wednesday.
Top Stock Trades for Tomorrow No. 1: Verizon (VZ)
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Verizon (NYSE:VZ) is working on its third-straight weekly decline, although the bulls still have a couple of days to turn things around. Regardless, the stock broke below the 50-week moving average last week and is breaking the 21-week moving average this week.
It’s not a great look, although it doesn’t necessarily spell doom either.
Verizon isn’t really known as a big trading favorite. Investors love it for the dividend, but it generally lacks the type of price action traders like. However, it does remain range-bound between the low $50s and low $60s.
I like range trades because the break of the range is rather clear. For now, I’m a buyer in the $53 to $55 area. If we get a dip to this area that holds as support, investors can target the 50-week moving average as their first price target. More conservative traders may consider using the 21-week moving average.
Above both measures could put $60-plus in play.
Top Stock Trades for Tomorrow No. 2: Churchill Capital (CCIV)
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It’s been a bumpy ride for Churchill Capital (NYSE:CCIV) and its peers over the last few months. After an explosive rally earlier in the year, these stocks have been hammered.
After a nice rally, shares are reclaiming to the 10-day and 21-day moving averages. However, the stock is still trading below $20.50. This former support level has been acting as resistance and it will be key to see if that changes.
Above puts the 50-day moving average in play, but clearing this measure could spark a large move to the $24 to $25 region.
On the downside, though, losing the 10-day and 21-day moving averages puts the recent low at $17.25 back on the table.
Top Stock Trades for Tomorrow No. 3: Dick’s Sporting Goods (DKS)
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Dick’s Sporting Goods (NYSE:DKS) will report earnings on Wednesday before the open. We’ve got a bit of a mixed bag with this one.
On the one hand, the recent pullback could set up the stock for a post-earnings pop. On the other hand, we have to be careful of deteriorating technicals.
On the upside, I want to see shares clear $86. That puts DKS stock back over the two-times range extension, as well as the 10-day and 21-day moving averages and downtrend resistance. See what I mean? That’s a lot of overhead levels and we have to be careful that Dick’s doesn’t break down too much from here. Above $86 puts the $90 to $92 area on the table, followed by $100.
If we get a bearish reaction, see how the $82 to $83 does as support. That’s been recent support and it’s where the 50-day moving average comes into play. Below could put the 21-week moving average in play.
Top Trades for Tomorrow No. 4: AutoZone (AZO)
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AutoZone (NYSE:AZO) isn’t completely breaking down, but it is showing signs of cracking.
The stock is working on its fifth decline in the last six trading sessions. However, Tuesday’s fall comes after the company reported earnings. It also puts the stock below its 10-week and 50-day moving averages.
I would love to see the stock reclaim the $1,450 level (and thus, both of these key moving averages). That would put some of its shorter-term moving averages back in play, followed by the gap-fill level up near $1,510.
On the downside, however, let’s see if AZO stock finds support from the $1,400 area. Below could put the 21-week moving average in play.
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.
