Stocks were buried on Monday and tried to rebound without much success on Tuesday. Despite plenty of volatility on Wednesday due to the Fed, stocks are posting decent gains going into the final minutes of the day. With that in mind, let’s look at a few top stock trades for Thursday.
Top Stock Trades for Tomorrow No. 1: Facebook (FB)
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Take out the last five days of trading, and Facebook (NASDAQ:FB) was a leader among tech stocks and the FAANG group. After declining in five of six sessions, though, we already have a monthly-down rotation as the stock failed to hold the $350 level.
From here, watch the 21-week moving average and the $351 level. Below these marks and it’s hard to be bullish on Facebook in the short term.
If the stock reclaims these levels, the 10-week and 50-day moving averages are likely in play.
On the downside, however, perhaps Facebook has to dip down the $330 level. Near $325 is the 10-month moving average. A larger flush could put the 200-day moving average in play.
Top Stock Trades for Tomorrow No. 2: SoFi Technologies (SOFI)
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SoFi Technologies (NASDAQ:SOFI) exploded higher on the day, climbing 11% on Wednesday.
Our $14.73 level ended up holding as support as shares exploded over the 50-day moving average. From here, these levels need to continue acting as support. Holding the 50-day is more of a preference, while $14.73 is more of a necessity.
On the upside, though, SoFi faces a tough test of the 21-week and 200-day moving averages. Above these measures could put a run to $20 and the 61.8% retracement in play.
Top Stock Trades for Tomorrow No. 3: Adobe Systems (ADBE)
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Adobe Systems (NASDAQ:ADBE) dipped lower after reporting earnings, but didn’t exactly crater, ending the day down 3% on the day. Not that it should crater, already declining in seven of the prior 10 trading sessions.
Not to mention Adobe delivered its sixth-straight top- and bottom-line beat and its third-straight quarter with revenue growth in excess of 20%.
With Adobe, there are a few key levels to take stock of. First, if this is an “ABC” correction, we’re at the 161.8% downside extension of the correction. Furthermore, we’re also at the daily VWAP measure.
For bulls, that is a decent risk/reward setup. On the upside, let’s see if Adobe can bounce back toward the 50-day moving average and fill the earnings gap.
However, a close below Wednesday’s low could put $600 and the 21-week moving average in play.
Top Trades for Tomorrow No. 4: Affirm Holdings (AFRM)
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Affirm Holdings (NASDAQ:AFRM) has been looking great lately, ripping higher in late August, then gapping higher on earnings earlier this month. The stock is trying to grind higher, despite the selling pressure in the broader market.
From here, the stock is giving us a daily-up rotation and filling the gap left behind from Monday. Here is a two-hour chart, and it’s pretty orderly.
Bulls would love to see the stock test up into last week’s high, at $121.25. Above that could open the door to this month’s high near $126.50. As long as it’s above the 10-day moving average and 50-unit moving average on the two-hour chart, bulls remain in control.
On the downside, though, the line in the sand to hold is $102.30.
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.
