After a solid day in the market on Wednesday, the bulls had solid follow-through on Thursday, with strong breadth and nice gains. Therefore, let’s look at a few top stock trades for Friday.
Top Stock Trades for Tomorrow No. 1: Twitter (TWTR)
The social media stocks have been mixed lately, but Twitter (NYSE:TWTR) has been doing pretty good. The stock is working on its seventh gain in the last eight sessions, while it nears a monthly-up rotation.
That comes on a move over the August high at $67.09. Now above all of its daily moving averages and downtrend resistance, the bulls are in control. They’ll want to see the stock hold these measures on the downside to maintain that control as well.
On the upside, a close over $67.10 puts $70 in play. Above $70 and that pesky $72 to $73 resistance area could be on deck.
Should Twitter break below all of its downside support measures, keep an eye on the 50-week moving average. That has been the line in the sand.
Top Stock Trades for Tomorrow No. 2: Salesforce (CRM)
Salesforce (NYSE:CRM) is enjoying a nice rip on the day, up 7.2% after the company provided a better-than-expected revenue outlook for next year.
In pre-market trading, the news sent the stock above the key $262.50 zone, as well as the 10-day and 21-day moving averages. However, I was focused on the stock’s key resistance level as a critical area. Could it get through this zone?
Well, CRM stock ended up blowing through this area between $267 to $270 and even took out the post-earnings high at $275.22. I would love to see Salesforce stay above $275 now, but as long as it’s over $270, it looks okay to me.
On the upside, however, let’s see if it can make new all-time highs above $284.50, then climb to $300. Above $300 may get long-term bulls talking about a potential move to $335, where it finds the 161.8% extension.
Top Stock Trades for Tomorrow No. 3: Dell (DELL)
In this case, the pre-market news had Dell trading up toward (but not through) downtrend resistance and last week’s high at $102.14.
However, the stock was able to power through these levels after the open, giving bulls a breakout over resistance and a weekly-up rotation. Over $102, and this stock still looks okay, although it is struggling with the highs near $105.
Over $105, and the $110 to $113 area is in play, the latter of which is where we find the 16.18% extension of the current range.
On the downside, though, a close back below these breakout levels could give us a “false start” on the long trade, putting $100 and the 50-day moving average back in play.
Top Trades for Tomorrow No. 4: Quantumscape (QS)
Last but not least, we have Quantumscape (NYSE:QS), which exploded higher by more than 14% on the day.
This stock has been absolutely buried from the highs, falling more than 85% from its December high to last month’s low. Now rallying, do bulls have a chance?
Earlier this week, the stock broke out over downtrend resistance, while also reclaiming the 10-day, 21-day and 50-day moving averages. With today’s rally, QS stock reclaimed the 21-week moving average, as well as the key $24 to $25 area. If it can hold this area, bulls can justify a long position.
On the downside, let’s see if shares can find this area as support, along with the 10-day moving average.
On the upside, however, $30 to $32 jumps out to me as a spot of interest. Above that and who knows, perhaps the 50-week and 200-day moving averages could be in play.
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.