We have been talking about the tiredness in the market all week, and now we’re finally seeing some of the froth coming out of it. With that in mind, let’s look at a few top stock trades as the market takes a breather.
Top Stock Trades for Tomorrow No. 1: Nio (NIO)
Nio (NYSE:NIO) stock was able to push up through the 200-day moving average, but just couldn’t get through the $44 area and downtrend resistance (blue line).
This resistance measure has really kept Nio in check, even as other auto and electric vehicle (EV) stocks have been exploding higher. Now fading lower on earnings, bulls must see where support comes into play.
Near $38 the stock will find the November low and 50-day moving average. Should we get a bit more weakness in the name, this is an obvious spot to watch for support.
Should it fail, bulls will have to look for the weekly VWAP measure to buoy the stock, followed by uptrend support.
On the upside, though, let’s see if the stock can clear the 200-day moving average. That will set it up for another test of downtrend resistance.
Top Stock Trades for Tomorrow No. 2: FuboTV (FUBO)
Like Nio, it’s not a good post-earnings response from FuboTV (NYSE:FUBO). Even worse for Fubo, though, the stock fell more than 23% on Wednesday.
The move is showing itself as a nasty gap on the charts, breaking below the 50-day and 200-day moving averages, as well as the weekly VWAP measure. That leaves the critical $25 level as the next spot to watch.
If this area holds, we’ll need to see if the bounce is enough to send Fubo up to the 50-day and 200-day moving averages. Through these measures, and $30-plus could be in play.
However, on a close below $25, the October low could be in play at $22.72. If that level fails as support, $20 could be on deck.
Top Stock Trades for Tomorrow No. 3: SoFi Technologies (SOFI)
What a great lesson we have here in SoFi Technologies (NASDAQ:SOFI), which reported earnings after the close.
On Tuesday, the stock pulled back but bounced off the 10-day moving average and off the October high of $21.77. This was a major rotation point earlier in the month and helped fuel the rally.
However, the stock opened below both of these measures on Wednesday, rallied to them and then was rejected.
That was a sign for traders that this stock was heading lower. Earnings may fix the issue or make it worse. But we’re not here to debate the merits of the company, only to examine its charts.
On the upside, we need to see shares back above $21.77. Plain and simple. If we get that, $23.50 to $23.75 could be next, followed by $25.
On the downside, though, I want to see how SoFi handles the $18 breakout level, where it also finds the 50-day and 200-day moving averages. That level should be support on a post-earnings pullback.
Top Trades for Tomorrow No. 4: Opendoor Technologies (OPEN)
Opendoor Technologies (NASDAQ:OPEN) has been very volatile over the last week or so, but ultimately is down in six of the past seven sessions.
Amid the decline, it’s now undercutting several major daily moving averages. This isn’t a good look for the bulls, although there may be some reprieve soon.
Let’s see how the stock handles the October low at $18.78, along with the 21-week moving average. This area should be support and if we’re lucky we’ll get a reversal low to trade against.
On the upside, however, let’s see what a bounce to the 200-day moving average and $20 level looks like. Rejection from this level could put the October low in play. Above the 200-day, and the 50-day is next.
On the date of publication, Bret Kenwell held a long position in SOFI. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.