After getting hammered on Tuesday, the stock market tried to find its footing on Wednesday. But the market isn’t doing a very good job convincing investors that it has bottomed. With that in mind, let’s look at a few top stock trades for Thursday.
Top Stock Trades for Tomorrow No. 1: Lucid Motors (LCID)
I have not been all that optimistic on Lucid Motors (NASDAQ:LCID) when it comes to the business, but we have been hammering this thing on the technicals.
Remember, we were buyers on the aggressive long setup as LCID stock reclaimed $17.50. Then, the stock reclaimed the key $21 level, followed by its key moving averages. Now, we’re finding resistance right where it’s been drawn for an entire month.
See that the 10-day moving average continues to buoy Lucid stock and let’s see if we get a push up toward $30. Above $30, and this stock could run even further.
At this point, though, investors should have been or should be locking in at least some profit, in my opinion.
Top Stock Trades for Tomorrow No. 2: DraftKings (DKNG)
Like other growth stocks, DraftKings (NASDAQ:DKNG) has been under pressure. However, the company’s intention to go for a $22 billion mergers and acquisitions (M&A) move — when it itself only has about a$20 billion market capitalization — has clearly convinced some investors to de-risk by selling the stock.
It’s now down in seven of the past eight sessions.
With Tuesday’s decline below $50.72, we technically had a monthly-down rotation in DKNG stock. So that’s a level bulls need to reclaim if they want to squeeze the stock back up to the 50-day and 200-day moving averages.
Above that opens the door back to $60-plus.
On the downside, however, let’s see if the stock can fetch a bounce at uptrend support. Below that mark may put the 21-month moving average on the table.
Top Stock Trades for Tomorrow No. 3: Dollar Tree (DLTR)
Dollar Tree (NASDAQ:DLTR) ripped higher on Wednesday, climbing more than 16% to $100. That said, it’s a fairly messy chart, which is why I used the weekly instead of the daily.
Back above the key $97 level and the 200-week moving average now, shares are struggling with the weekly VWAP measure and the 21-week moving average.
If the stock can push above those measures, it puts the 50-week in play. Above the 50-week and the third-quarter high is on the table near $107.
On the downside, though, a move below $97 bulls may having bulls wanting to exercise some caution. Otherwise, buyers can be long against this level.
Top Trades for Tomorrow No. 4: Editas Medicine (EDIT)
Editas Medicine (NASDAQ:EDIT) is enjoying the opposite price action from DLTR, down almost 19% and crashing through several key levels and moving averages. The most recent of which was uptrend support (blue line).
Now down four days in a row, Editas has fallen more than 31% in that span.
If it can reclaim uptrend support, look for a move back up toward the 200-day moving average and the gap-fill area. Above that could put the second gap-fill in play near the 50-day moving average.
On the downside, however, the $37.63 level and 21-month moving average could be on the table.
On the date of publication, Bret Kenwell held a long position in DKNG. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.