The markets were undecided on Wednesday after a few earnings reports and the Fed’s FOMC announcement. However, the bulls spoke up loud and clear on Thursday, driving equity prices higher. With that in mind, let’s look at a few top stock trades for Friday.
Top Stock Trades for Tomorrow No. 1: Ethereum (ETH-USD)
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We had a really nice “ABC” correction in Ethereum (CCC:ETH-USD), where bulls saw $2,800 hold as support.
The ensuing rebound sent shares higher in eight out of nine sessions, as Ethereum chopped and held above the 50-day moving average. With Thursday’s rally, Ethereum launched over the “B” leg high near $3,675.
That opened the door to the 78.6% retracement, which is currently acting as resistance. Should Ethereum push through this level, it opens the door to $4,000. Above that, and the all-time high is on the table near $4,400.
On the downside, however, a drop below $3,675 opens the door to the 50-day moving average, provided that the 10-day doesn’t buoy Ethereum.
Top Stock Trades for Tomorrow No. 2: Plug Power (PLUG)
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Plug Power (NASDAQ:PLUG) caught a nice boost on Wednesday and held its gains on Thursday. From here, we’re in an interesting spot with the stock, though.
On the downside, I wouldn’t hate a dip down toward $30, along with the 10-day and 10-month moving averages. That will also fill the gap. However, a break below these levels will not look too hot and could put the 50-day moving average in play.
On the upside, though, a move above this week’s high (currently at $34) opens the door to the 200-day moving average and $36 level. Keep in mind the strong volume we saw from the last two days too.
Above $36 puts the $42 gap-fill mark on the table.
Top Stock Trades for Tomorrow No. 3: Walgreens (WBA)
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Walgreens (NASDAQ:WBA) had some volatile post-earnings action on Thursday.
Shares broke below the September and October lows, and even cracked below $42, before snapping higher and rebounding with a vengeance. The move was enough to send WBA stock back up through all of these levels, along with the 50-day and 200-day moving averages.
That said, it’s struggling with the $51 area and remains below last month’s high just below $52.
A couple days of consolidation would do Walgreens some good, opening the door to a weekly-up and monthly-up rotation next week.
Over $52 puts $55.50 in play. On the downside, however, a move below $50 puts the 50-day moving average back on the table.
Top Trades for Tomorrow No. 4: Netflix (NFLX)
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Last but not least, we have Netflix (NASDAQ:NFLX). What a beast this name has been on the long side. We flagged this name on Sept. 30 looking for a breakout over $615 and a rally to the 161.8% extension at $647.53.
Look at the chart here and tell me how it could have gotten any better than this?
On the dip, we have a classic pullback to the 10-day moving average, followed by a daily-up rotation with Thursday’s action. That keeps a retest of the 161.8% extension and the $650 level on the table.
On the downside, a move below this week’s low near $622 really puts a dent in the bull case in the short term.
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.
