The S&P 500 notched another record high on Wednesday but failed to give bulls some much needed follow-through. It’s a waiting game through these slow summer trading sessions. Let’s look at some top stock trades.
Top Stock Trades for Tomorrow No. 1: Amazon
Amazon (NASDAQ:AMZN) has not performed well since reporting earnings in late July, as shares have been melting lower since. In fact, a name that was so often talked about now seems to be rarely discussed among traders.
Shares are testing down into the 200-day moving average with Wednesday’s action. However, that has not been a very solid support mark this year. Instead, the 50-week moving average has been.
Obviously, this measure can waver or even falter, but for now, $3,250 should draw a bounce from Amazon provided it dips that far.
The one concern I have is that the 50-week moving average is now trending sideways instead of higher. That diminishes its strength in my opinion. That’s particularly true if the Nasdaq begins to correct at the same time, which would reduce my confidence in this key level holding.
If it holds, let’s see if Amazon can reclaim the 10-day moving average, which is currently acting as resistance. Above it could put the 50-day on the table. A break of the 50-week moving average could put more selling pressure on AMZN unless this measure is quickly reclaimed.
Top Stock Trades for Tomorrow No. 2: Starbucks
I covered Starbucks (NASDAQ:SBUX) this morning, as I looked through the charts at night and saw something that I liked. That said, the setup remains similar today — and potentially better.
Shares had a strong run to new all-time highs but have been pulling back over the last few weeks. Now at the 50-day moving average, I’m looking for a bounce.
Aggressive bulls can be long right here and look for a rebound back up to $119. Above the 21-day moving average could put the $122.50 to $123 area in play. More conservative bulls may consider waiting to buy until we see some sort of rotation higher — like a daily-up rotation, for instance.
On the downside, a break of $114.25 could put $108 to $110 on the table, along with the 200-day moving average.
Top Stock Trades for Tomorrow No. 3: Coinbase
Coinbase (NASDAQ:COIN) looked like it was going to trade pretty well today, rallying higher on earnings. However, those gains couldn’t stick. Instead, COIN is actually fading back below the two-day high.
Seeing such a hearty fade isn’t all that inspiring, but if it held $282, then the stock would at least by making some progress.
A move back over $282 is better, but now the high at $294 is what we have to watch. Over $294 and the $302 to $305 zone will be in play. Above that could open the stock up to a run higher, potentially to the 61.8% retracement.
On the downside, watch this week’s low. A break puts the 10-day moving average in play along with the $256 area. Failure to hold this zone puts the 21-day and 50-day moving averages on the table.
Top Trades for Tomorrow No. 4: Unity Software
Last but not least is Unity Software (NYSE:U), which is spiking higher on earnings and not giving up its gains.
With today’s rally, Unity is exploding over the 200-day moving average as well as that notable $115 level. With the move, bulls are desperately hoping to see these measures become support.
If shares can continue higher, let’s see if the 61.8% retracement is a possible upside target, near $137. Above that and the gap-fill near $150 is in play.
On the downside, look for the 50-day moving average to act as support if Unity closes below $115.
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.