Stocks opened notably lower on the day as we saw a collapse in the price of cryptocurrencies. However, many made strong recoveries on the day and stocks rallied off the lows. Let’s look at a few top stock trades for Thursday.
Top Stock Trades for Tomorrow No. 1: Ethereum (ETH-USD)
Ethereum (CCC:ETH-USD) had been on a powerful rally not that long ago. However, it’s been under pressure since topping out earlier this month and then finally broke down on Wednesday.
At the session low, Ethereum was down 37% today! However, from the lows, it’s actually up 40%, curbing its one-day losses to “just” 23% at the moment. The volatility has been wild, to say the least.
Now back above the 50-day and 10-week moving averages, bulls need to see Ethereum hold above these measures. At the very least, it has to hold above $2,550.
If ETH loses the $2,500 mark, we can’t rule out a return to this week’s low. Luckily, shares caught a bounce right where we had the breakout marked, near $2,000.
On the upside, however, let’s see how Ethereum does on a test of its 10-day moving average. Above it could put the $3,500 mark and the 21-day moving average in play.
Top Stock Trades for Tomorrow No. 2: AMD (AMD)
Advanced Micro Devices (NASDAQ:AMD) has been range bound since last summer, although $74 continues to hold as support.
On the upside, we want to see a rally back to $80, where AMD stock will find its 10-week and 50-week moving averages. Above these measures puts the 21-week on the table, followed by resistance at $88.
On a break below last week’s low at $72.50, it’s possible we see a move lower. In that scenario, keep an eye on the 21-month moving average. If for some reason AMD stock breaks below that measure, the $60 breakout level could be in play.
Top Stock Trades for Tomorrow No. 3: Target (TGT)
While other retailers have struggled despite strong earnings results, Target (NYSE:TGT) is doing quite well.
Shares are pushing higher on Wednesday, running into its prior highs. From here I’d love to see a push up to the 161.8% extension near $220. Above that puts the two-times range extension at $233 in play.
On the downside, though, keep an eye on $210. Losing that mark likely puts it below the 10-day and 21-day moving averages, and puts the 10-week and 50-day moving averages on the table. For now, bulls are in control with this one.
Top Trades for Tomorrow No. 4: TJX Companies (TJX)
Unlike Target, TJX Companies (NYSE:TJX) is not responding well to earnings. However, that’s not the end of the world, either.
Shares are trading right down into the 21-week moving average, a measure that has been support all year. If it holds, look to see if TJX stock can reclaim the 10-week.
If it fails to do so, it’s possible we see a retest of the pre-coronavirus highs near $65, with more support sitting in the low $60s.
Back above $71, and TJX stock could retest the all-time highs.
Top Trades for Tomorrow No. 5: JD.com (JD)
JD.com (NASDAQ:JD) was trading really well coming into 2021, but like other growth stocks, it has struggled mightily since topping out in mid-February.
After cascading lower, JD stock quickly saw its short-term moving averages turn from support to resistance, while it failed to reclaim $85. This combination should have kept bulls out of the name.
Then it failed to hold the $78 to $79 area and 50-week moving average, which also turned to resistance. Are you sensing a pattern?
Now trying to hold last week’s low near $66.50, let’s navigate this one. On the upside, see how JD stock does on a retest of the $77 to $80 area, if it can get there. There it finds current resistance, but it also finds the 10-day, 10-month and 50-week moving averages.
A close below $66.50 likely puts the 21-month moving average and the $60 area in play.
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.