It was a slow and choppy day for most of Friday’s session. While the low summertime volume doesn’t help, it’s the annual rebalancing of the Russell 2000 that’s likely creating so much mess. Let’s look at a few top stock trades as we go into the last week of June.
Top Stock Trades for Tomorrow No. 1: BlackBerry (BB)
BlackBerry (NYSE:BB) is trading lower on earnings, as bulls once again fail to bid the name higher after its quarterly results.
Shares were already below the 10-day and 21-day moving averages ahead of the report, but BlackBerry was holding up above key support. That came into play near $12.30. The recent lows around $12.30 were also holding up pretty well.
Breaking below all of these levels now leaves the stock vulnerable to more downside. Should BlackBerry end a day below $12, it opens the door to a test of the 50-day moving average. Below that and the $9.30 to $9.50 area could be on the table, along with a test of the 200-day moving average.
On the upside, a move back above $12.13 could put $12.50 and a test of the 10-day moving average on the table. For now though, the setup is not favoring the bulls.
Top Stock Trades for Tomorrow No. 2: FedEx (FDX)
Late last week, FedEx (NYSE:FDX) stock bounced off the 21-week moving average and rallied up toward $305 ahead of earnings. However, the post-earnings reaction has been lower, cementing a lower high on the chart.
That said, the 21-week moving average remains in play as possible support.
If FDX stock takes out the 21-week moving average and rotates lower, look for a dip down to the $275 zone. There it finds the 61.8% retracement of the prior range, the 200-day moving average and oddly enough, the prior all-time high.
In the event that FedEx stock pushes higher, look for a rebound back to the $300 level and 50-day moving average. Above $305 and the all-time high near $320 will be on bulls’ radar.
Top Stock Trades for Tomorrow No. 3: CarMax (KMX)
For being out of the main part of earnings season, we sure had a lot of earnings movers on the day. That includes CarMax (NYSE:KMX), which is rallying on Friday.
The $113 level did an incredible job holding as support, as shares were eventually able to rally higher off this zone after several attempts at breaking below it. With the post-earnings rally, KMX cleared both the 21-week and 50-day moving averages. However, it couldn’t clear the 61.8% retracement.
From here, I would love to see these two key moving averages hold on any sort of short-term pullback. KMX stock has done a great job of doing that so far.
On the upside, look for a move over $129. If it can clear this level, it puts the $135 to $138 zone in play, along with the current high up at $138.77.
Top Trades for Tomorrow No. 4: Shopify (SHOP)
Shopify (NYSE:SHOP) has been wavering a bit lately after a powerful surge to new all-time highs. However, the stock gave patience bulls exactly what they were looking for.
On Friday, the stock dipped down to the 10-day moving average, a nice reset for those looking to buy the dip. Of course, it’s always possible that support doesn’t hold, but this gives traders a reasonable risk-reward approach.
Should support hold, I’m looking for a bounce back up toward the $1,490 to $1,500 area. Above that and $1,525 could be on the table. If momentum is running strong, the highs near $1,550 could be in play.
Should support fail, let’s see how Shopify handles $1,400. Below that and $1,360 is possible, followed by the 21-day moving average.
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.