On Wednesday I asked, “did we bottom?” Bulls are trying to answer that question with a resounding “yes!” following Thursday’s price action. After a strong open, stocks didn’t gain much traction in the afternoon, but the bulls have to get through the labor report on Friday morning. With all of that in mind, let’s look at a few top stock trades until then.
Top Stock Trades for Tomorrow No. 1: Tilray (TLRY)
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Tilray (NASDAQ:TLRY) shares tried to rally after earnings, and the stock gained 2.1% on Thursday. However, that’s not great given that the stock is trading near its 2021 low.
The stock continues to struggle against active resistance from the 10-day and 21-day moving averages. On the plus side, though, the stock is above the September low of $10.95.
This is not a name I would be long at this point — the trend simply does not favor the bulls.
However, for those that do feel the need to be long, see that the stock stays above Thursday’s low at $10.37. A close below that opens the door to $10 or lower.
On the upside, however, $12.50 could be in play should the stock clear its 21-day moving average.
Top Stock Trades for Tomorrow No. 2: Arrival (ARVL)
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Shares of Arrival (NASDAQ:ARVL) caught a nice boost on Thursday. Like Tilray, though, one day of action doesn’t get Arrival out of the woods. There are still plenty of hurdles in the way.
If the stock can hold up over the $13.70 area, bulls have a case to be made. That puts the 21-week moving average in play, followed by $15. Above these measures could eventually put the $17.50 level on the table, along with the 200-day moving average.
Below $13.50, and the stock’s short-term moving averages are in play, along with the VWAP measure.
A move below this month’s low at $12.05 really cracks the bullish case though and could put $10 back on the table.
Top Stock Trades for Tomorrow No. 3: General Motors (GM)
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Earlier this week, I pointed out that the autos were trading much better and that includes General Motors (NYSE:GM). The stock is hitting its highest level since early August, as it works to fill its gap at $56.61.
Clearing the $55 to $55.50 zone and the 50% retracement now, let’s see if GM stock can fill that gap then climb to the 61.8% retracement at $57.72.
Above that opens the door to the $60 to $60.60 area, where GM stock finds the 78.2% retracement.
On the downside, though, a move below the 10-day moving average and the $55 level would be a red flag and increase the odds of a deeper dip. That could potentially put the 21-day and 50-day moving averages in play.
Top Trades for Tomorrow No. 4: Levi (LEVI)
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Levi (NYSE:LEVI) is catching a nice post-earnings boost on the day. After struggling with $30 in the first and second quarter, Levi began pulling back.
Luckily, the prior high from 2019 at $24.50 has been acting as support. The 50-week moving average has also played a role.
If Levi stock loses $24, that would have a very bad look to it, as it breaks below too many key areas.
On the upside, watch $26.30. A weekly close above that mark — last week’s high — gives us a weekly-up rotation. Above the 21-week moving average, and the weekly VWAP measure puts $27.50-plus in play, opening the door to $30 resistance.
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.
