Can you tell that we’re just a few days away from the monthly options expiration day? Well I could, given how choppy the day was! With that in mind, let’s look at a few top stock trades as we turn our focus to Thursday.
Top Stock Trades for Tomorrow No. 1: Nvidia (NVDA)
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Nvidia (NASDAQ:NVDA) has spent plenty of time in the spotlight lately, and it will certainly do so after the close when it reports earnings.
Without earnings, we’d have a beautiful reset to the 10-day moving average. Bulls may still be all over this stock buying the dip regardless of earnings, but we have to respect the quarterly report when writing about it ahead of a potentially binary event.
With a move down into the $200 support area and the 10-day moving average, a bounce over downtrend resistance would be nice. A close over $307.50 would be even better, putting Nvidia over short-term resistance.
If we get a bearish post-earnings reaction, we can’t rule out a test of the 21-day moving average and a potential gap-fill down near $267.
On the upside, though, a move over $325 opens the door to the $340 to $345 area.
Top Stock Trades for Tomorrow No. 2: Ford (F)
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Ford (NYSE:F) has wobbled for a couple of days, but it continues to hold strong. The $20 level is being a pest to the bulls, but a move over this mark could fling this thing into fifth gear.
Specifically, it would have the $20.50 level in play. Not only is this the recent high, but it’s also where the two-times range extension comes into play.
Above $20.50, and the 261.8% extension is technically in play up near $23. Obviously worth mentioning is that the 261.8% extension of the much longer-term range comes into play near $21.25.
On the downside, however, the 10-day moving average remains support. If it fails, we could see Ford test the $19 support area, followed by the 21-day moving average.
Top Stock Trades for Tomorrow No. 3: Visa (V)
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Man, Visa (NYSE:V) was hammered on Wednesday on some negative news related to Amazon (NASDAQ:AMZN).
Down more than 15% from its highs, and I’m a proponent of buying a high-quality stock like this on the dip.
Currently we have an “ABC” type correction down through the 21-month moving average. This area is typically where I’d like to buy, although Visa is technically trading below it now.
That said, it’s finding support near $200 and the 161.8% downside extension from the “B” leg to the “A” leg. Bulls are hoping the selling will conclude around this area. It’s possible we see a further push down though, and that could put the $185 area on deck if the recent low doesn’t hold.
In a worst-case scenario, I think the $175 to the 200-week moving average area could be in play. For longer-term traders and/or investors, though, I would consider beginning to accumulate this one.
Back over this month’s low at $206.73 and the 21-month moving average could get a strong bounce going.
Top Trades for Tomorrow No. 4: TJX Companies (TJX)
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TJX Companies (NYSE:TJX) was up nicely on the day, climbing nearly 6% on better-than-expected earnings. However, it’s fading from the prior high near $76.
It’s failure to hold this high may have bulls on guard a bit and that’s reasonable. From here, we have to see if it can reclaim this level or if it’s going to pull back into its 61.8% retracement and gap-fill level at $70.34.
On the upside, however, a move back over $76 opens the door to Wednesday’s high near $77, followed by trend resistance (blue line). If TJX stock can really break out, the 161.8% extension is on the table.
On the date of publication, Bret Kenwell held a long position in NVDA and F. 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.
