It was a back-and-forth day with the FOMC announcement and the start of earnings season. That said, we had some great moves in individual names. So, let’s look at a few top stock trades for Thursday.
Top Stock Trades for Tomorrow No. 1: Advanced Micro Devices (AMD)
There’s nothing mixed about the picture we’re getting with Advanced Micro Devices (NASDAQ:AMD). The stock gave us a marvelous “ABC” correction down to the prior breakout zone near $100.
Even though it came back for a retest of this area, it held strong and popped above downtrend resistance last week (blue line).
With Wednesday’s rally, AMD stock is giving bulls a two-times weekly-up rotation over $108.44. If that move can stick, it opens the door to the $114 to $115 area, followed by $120 to $122.
I would love to see this name garner some strong upside momentum going into earnings. On the downside, a break of its major moving averages could put the $100 level back in play.
Top Stock Trades for Tomorrow No. 2: JPMorgan (JPM)
JPMorgan (NYSE:JPM) was trading incredibly well ahead of earnings, breaking out to new highs. Unfortunately, those gains were not able to stick.
On the plus side, JPMorgan is trading right down to its 50-day moving average, which gives aggressive bulls a reasonable risk/reward long setup. On a bounce, let’s see if JPM stock can regain the 21-day moving average, then challenge the $167 area.
Looking on the downside, however, a prolonged dip could put the 200-day moving average in play, along with uptrend support and the 10-month moving average.
Top Stock Trades for Tomorrow No. 3: Alibaba (BABA)
Did Alibaba (NYSE:BABA) bottom? It looks like that’s what the stock is trying to say, although we can’t rule it out with how terribly this name has been trading.
What I’m watching is simple: Can BABA stock reclaim the 50-day moving average and the $170 level?
If it can do so, it clears active resistance (the 50-day) and the 2020 Covid-19 lows ($170). Above that opens the door to the $178 to $180 area, followed by the 200-week moving average near $200.
On the downside, though, I want to see the 10-day and 21-day moving averages act as support. Below both measures puts the $138 lows back on the table.
Top Trades for Tomorrow No. 4: Twilio (TWLO)
The uptick in growth stocks shows glimmers of hope today, which is evident in names like AMD, Twilio (NYSE:TWLO) and the next stock in this list.
Twilio caught my attention early, as the stock quickly powered through the 21-day moving average and broke out over wedge resistance.
From here, the 50-day and 200-day moving averages are obvious upside targets. Should the stock clear these measures, it puts the 61.8% retracement in play near $387, before $400 resistance.
On the downside, however, a move back below the 21-day moving average will be highly discouraging, putting $325 or lower back on the table.
Top Trades for Tomorrow No. 5: Digital Ocean (DOCN)
What a beast we have with Digital Ocean (NYSE:DOCN), as the stock bursts to new all-time highs on the day.
Digital Ocean was able to break out over $87.50 resistance, as well as the prior high at $88.48. The move over $90 technically opens the door up toward the 161.8% extension at $97, followed by the coveted $100 mark.
On the downside, though, I’d love to see the $87.50 area flip from prior resistance to current support. Should it fail to do so though, we’ll need to see the 10-day and 21-day moving averages act as support. Below could put the $75 to $80 area in play.
On the date of publication, Bret Kenwell held a long position in TWLO. 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.