After a morning rally, the markets failed to gain traction on Thursday. Perhaps it was the bank and bond market holiday, which were closed for Veterans Day. Either way, it was a sluggish and choppy session. With all of that in mind, let’s look at a few top stock trades.
Top Stock Trades for Tomorrow No. 1: Microsoft (MSFT)
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Early in the week, we were cautioning readers of a potential decline or pause in the broader market. That came to fruition, and it hit market-leaders like Microsoft (NASDAQ:MSFT).
Microsoft was one of the few stocks I was watching this morning, as it pulled back right into its 10-day moving average. Now after an inside day, bulls have something to prove going into the weekend.
Aggressive buyers can be long now against this week’s low. Conservative bulls may wait for a potential inside-and-up day, where Microsoft stock rotates above today’s high and triggers a long position.
On the upside, $338.75 to $339 would be our first target, followed by the $345 to $346 area.
Top Stock Trades for Tomorrow No. 2: Marqeta (MQ)
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Man, what an ugly day we have here in Marqeta (NASDAQ:MQ). The stock is giving us a bearish engulfing candle, as the stock opened significantly higher on earnings but faded hard and even moved below Wednesday’s low.
We had a nice little falling wedge going in this one too (blue lines), followed by the upside breakout. It would have been a beautiful pattern had shares maintained above $30.
From here, bulls need to see the stock hold above $23.75. A move below could trigger a drop back down to the $20 area.
On the upside, however, a move back over the 50-day moving average is the first step. That’s followed by a move over $30 and Thursday’s high, putting $32.50-plus in play.
Top Stock Trades for Tomorrow No. 3: Affirm (AFRM)
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Affirm Holdings (NASDAQ:AFRM) has been incredibly volatile lately, but finished higher by about 13.7% on Thursday. That follows a four-day skid where shares fell 20% from the recent high.
However, that drop landed the stock at the key $133 level and the 50-day moving average, where it found support before today’s rally.
Unfortunately, AFRM stock faded hard from the $165 level. Furthermore, the stock failed to close back above uptrend support (blue line) and the 10-day moving average.
That said, though, Affirm was able to close back above its prior high at $146.90. Above this level, and bulls remain in some form of control, although their grip would become much stronger back above $157.50.
However, below $147 keeps the 50-day in play.
Top Trades for Tomorrow No. 4: Lordstown Motors (RIDE)
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Lordstown Motors (NASDAQ:RIDE) had a great day, closing higher by nearly 24%.
The move launched RIDE stock over the 10-day and 50-day moving averages. Bulls must see the stock hold above these moving averages should shares pull back.
More impressive would be for the stock to stay above the 21-week moving average. If the stock can do that and clear $7.50, the $9 level would be in play. Above that opens the door to $10 and the 200-day moving average.
However, below the 50-day, and bulls must be aware of the risk that RIDE stock retests $4.77.
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.
