For the second-straight day, we saw an afternoon dip in stocks as investors try to get positioned ahead of the non-farm payrolls report tomorrow morning and amid low trading volumes. That being said, let’s look at a few top stock trades.
Top Stock Trades for Tomorrow No. 1: Broadcom (AVGO)
Click to Enlarge
Broadcom (NASDAQ:AVGO) reported earnings after the close, and this one has an interesting setup.
After eight months, Broadcom finally broke out over $490. However, we’re now getting a pullback back down to that level and the 10-day moving average amid three straight down days in the stock.
On the downside, bulls really want to see this level hold. In other words, they’re really hoping for the worst-case scenario to be a muted earnings reaction. If it’s worse than that, and shares actually decline, let’s see if support comes into play at the 50-day moving average.
Otherwise, a visit to the 61.8% retracement may be in order, along with the 200-day.
On the upside, though, let’s see if AVGO stock can rally above the current all-time high near $508. Above that could set the tone for a larger run, potentially up to the 161.8% extension.
Top Stock Trades for Tomorrow No. 2: ChargePoint (CHPT)
Click to Enlarge
ChargePoint (NYSE:CHPT) is enjoying a strong day, up more than 8% on Thursday. However, it’s got an uphill battle from here.
If the stock can hold above the 21-day moving average and stay above that mark, we can get a potential move to the 50-day moving average and the $26 level.
However, above $26.50, and this name could really fly. Specifically, it could put the 200-day moving average and $30 level in play.
However, if CHPT stock takes out Thursday’s low, keep the $20.50 level written down. Below that puts $19.50 on the table.
Top Stock Trades for Tomorrow No. 3: AT&T (T)
Click to Enlarge
Seemingly every dividend investor’s favorite stock to hate, AT&T (NYSE:T) continues to underwhelm. While it’s up nicely on the day, shares remain trapped in a downtrend and are being rejected by the 21-day moving average.
As long as it holds the $26.75 level, bulls who want to be long can justify a position. A close below that opens the door to the 2020 lows, though.
For what it’s worth, those don’t come into play too much lower, with the lowest low sitting at $26.08 from March.
However, on a close above channel resistance, keep an eye on T stock. It could put the $28.86 gap-fill level in play, followed by a move to the 200-day moving average.
Top Trades for Tomorrow No. 4: Visa (V)
Click to Enlarge
Visa (NYSE:V) is an incredible high-quality company and now in decline, it might be worth paying attention to.
Shares are dipping down to the 200-day moving average. For bulls, this is likely a buying opportunity. If the stock breaks $220 and closes below it, that could be investors’ stop-loss.
That could also put the 21-week moving average in play, which historically has been a great opportunity on the long side.
If we bounce, let’s see how V stock handles the $228 to $230 area. Above it, and the 50-day moving average may be within reach.
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.
