4 Top Stock Trades for Thursday: AMD, NFLX, WISH, NVAX

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Top stock trades - 4 Top Stock Trades for Thursday: AMD, NFLX, WISH, NVAX

Stocks have been enjoying an epic rebound over the last week, as equities come flying back to life as earnings season gets underway. So, let’s look at a few top stock trades as the week unfolds.

Top Stock Trades for Tomorrow No. 1: Advanced Micro Devices (AMD)

Daily chart of AMD stock
Click to Enlarge
Source: Chart courtesy of TrendSpider

The move in Advanced Micro Devices (NASDAQ:AMD) has paid off incredibly well. We have been riding the breakout in this one and the recent rotation shouldn’t come as a surprise to anyone.

The stock broke out over downtrend resistance (blue line) and went on to reclaim the 50-day moving average. From there, we saw a powerful two-times weekly-up rotation over $108.44.

If bulls missed the breakout, this rotation was their second chance.

Since then, shares have powered higher, clearing the “B” leg high up near $114.50. More impressively, AMD stock found this level to be support earlier this week. Now trying to push higher, let’s see if AMD stock can get into the $120 to $122.50 zone.

However, if the stock pulls back instead, look for support near $114.50. Below this mark puts the 10-day moving average in play.

Top Stock Trades for Tomorrow No. 2: Netflix (NFLX)

Top stock trades for NFLX
Click to Enlarge
Source: Chart courtesy of TrendSpider

Netflix (NASDAQ:NFLX) has been the best-performing FAANG component over the last one- and three-month periods.

After a recent run to all-time highs, the stock dipped exactly where we were looking for it to, at the 161.8% extension near $647.50.

The stock initially opened lower on Wednesday following earnings, but it’s rebounding off the 21-day moving average and near-test of the prior high at $615.60.

From here, I’d love to see a push over $640 resistance, putting the current all-time high and the $650 level in play. Over the latter, and the $690 to $700 area could eventually be on the table.

Nonetheless, below $615 could put a dip to the $590 to $600 area in play, along with the 50-day moving average.

Top Stock Trades for Tomorrow No. 3: ContextLogic (WISH)

Top stock trades for WISH
Click to Enlarge
Source: Chart courtesy of TrendSpider

ContextLogic (NASDAQ:WISH) has been in full-on breakdown mode since August. That’s when shares plunged below the key $7.63 level. Even though the stock rallied from the lows on that high-volume day, it couldn’t reclaim this key mark.

That’s why we knew to avoid it.

In subsequent rallies, the $7.63 level continued to act as resistance as well. So did the 10-day and 21-day moving averages. While WISH stock has reclaimed those moving averages, it still has other hurdles in the way despite Wednesday’s 14% rally.

Specifically, the $6.15 level has become a notable mark. Just above this level is the daily VWAP measure and the 50-day moving average. If these levels combine to act as resistance, bulls will want to see the 10-day and 21-day moving averages act as support.

Below these moving averages puts uptrend support in play (blue line). Below that and this month’s low at $4.61 could be in play.

Above the 50-day, and daily VWAP measure could open the door for a squeeze up to $7.63.

Top Trades for Tomorrow No. 4: Novavax (NVAX)

Top stock trades for NVAX
Click to Enlarge
Source: Chart courtesy of TrendSpider

Last but not least we have Novavax (NASDAQ:NVAX), which plunged lower on the day. The stock opened lower by 23.5%, although bulls have done a great job bidding this one off the lows.

In doing so, the stock avoided taking out the May lows near $117, while also reclaiming the 21-month moving average. The magnitude of this rally makes NVAX stock a difficult trade from here, because the downside risk is considerably wide.

If shares can stay above the 21-month moving average, the prior October low near $154 could be in play, followed by the gap-fill level at $160.20.

Notice how the $175 area went from support throughout the summer to resistance in October. That prefaced today’s massive decline. Should shares fill the gap, a run back toward this area may be in store.

Below the 21-month moving average leaves Novavax susceptible to a retest of Wednesday’s low and the $117 area. Below that, and $100 could be in play.

On the date of publication, Bret Kenwell held a long position in AMD. 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.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.


Article printed from InvestorPlace Media, https://investorplace.com/2021/10/4-top-stock-trades-for-thursday-amd-nflx-wish-nvax/.

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