It was a messy and choppy session for a bunch of traders on Thursday. Heavy sector rotation and choppiness ahead of Friday’s monthly expiration made it a difficult trading environment for many investors. That said, let’s look at a few top stock trades as we head into Friday.
Top Stock Trades for Tomorrow No. 1: Nvidia (NVDA)
Click to Enlarge
Nvidia (NASDAQ:NVDA) has taken investors off guard a bit. Shares were bobbing around the 10-day moving average, but then plunged right through the 21-day moving average.
Given how strong of a run this stock has been on, a pullback was inevitable. At the same time, it seemed like a pullback would be greeted with support from some of these key moving averages. That said, it’s not the easiest road to navigate right now, and Nvidia does have its stock split coming up.
From here, I want to see today’s lows hold around $754. Below that opens the door to an even larger dip and could put the 10-week moving average in play.
Should shares rebound from this $750 to $755 area, let’s see how Nvidia does with its 21-day and 10-day moving averages. Back above them puts $800-plus in play. If they are resistance, bulls may need to bide their time until momentum returns.
Top Stock Trades for Tomorrow No. 2: Disney (DIS)
Click to Enlarge
Disney (NYSE:DIS) continues to trade very well lately. Right off the bat on Monday the stock gave us a strong push up through multiple key moving averages. It has consolidated those gains nicely near current levels.
Now, keep an eye on this week’s high at $186.29. A push above that puts the 161.8% extension on the table at $189. If we can clear $190, it’s possible that Disney pushes back up toward its highs around $200.
The stock showed great stability and relative strength throughout the last few days — and in particular, in Thursday’s session.
On the downside, there’s no reason to panic on a move below $182. While that could set up some more downside, there should be support near $178 to $180 from the 10-week and 10-day moving averages.
Top Stock Trades for Tomorrow No. 3: Norwegian Cruise Line (NCLH)
Click to Enlarge
Norwegian Cruise Line (NYSE:NCLH) has been getting buried, just like other cruise and airlines stock. Norwegian stock is in the midst of a four-day losing streak, with shares breaking below the 200-day moving average on Wednesday.
On Thursday, the stock was back under pressure. However, it’s catching a bid from the 50-week moving average — highlighting the importance that investors look at multiple timeframes for their setups.
We also have a bit of divergence on the Williams %R reading (blue circle at the bottom of the chart).
On the upside, let’s see if we can get a rebound back up to the 200-day moving average and the $26 to $27 area. On the downside, a break of Thursday’s low — and worse, a close below it — could set up NCLH stock to trade lower. It could even put that gap-fill measure in play at $21.03.
Top Trades for Tomorrow No. 4: Amazon (AMZN)
Click to Enlarge
Last but certainly not least is Amazon (NASDAQ:AMZN). I love this setup for a few reasons.
Either support will hold right near current levels as the 10-day moving average comes into play, or we’ll get a deeper pullback.
If the 10-day moving average holds and a bounce ensues, $3,675 is the first area of interest in the short-term, followed by a move over $3,700. If the latter plays out, $3,750 is on the table, followed by a push toward new highs.
On the downside, a break lower could put the $3,550 area — the prior all-time high — and the 21-day moving average in play. That seems like a great dip-buying opportunity in my opinion, should it come to fruition.
On the date of publication, Bret Kenwell held a long position in NVDA. 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.
