After a strong rally on Tuesday, stocks tiptoed higher on Wednesday. So with just one trading day to go this week, let’s look at a few top stock trades for Thursday.
Top Stock Trades for Tomorrow No. 1: Peloton (PTON)
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Check out this super interesting chart of Peloton (NASDAQ:PTON). On the top, we have the daily chart, and on the bottom, we have the weekly.
The weekly chart shows Peloton working on its seventh-weekly decline in the last eight weeks. However, it also shows that shares are trading near a key level from 2020, near $37.
When we look up at the daily chart, there’s a massive gap-down from the $85.75 level, which kicked off this painful downtrend. Amid that downtrend, the 21-day moving average has been stiff resistance.
However, notice the bullish divergence on the RSI reading for the daily chart. Combined with the $37 level, things are potentially looking interesting here.
I would love some kind of break of $37 or gap below this level and then a reclaim of $37. Sort of like the trade we had with Canopy Growth (NASDAQ:CGC), which worked out incredibly well.
We may not get that setup with Peloton, but with Wednesday’s dip I at least found it interesting. On the upside, though, PTON stock needs to clear the 21-day moving average.
Top Stock Trades for Tomorrow No. 2: Procter & Gamble (PG)
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Like Canopy Growth, Procter & Gamble (NYSE:PG) was one of our go-to trades this week. While Canopy was a slick reversal setup, P&G was a buy-the-dip opportunity.
The first opportunity came on a dip to the 8- and 10-day moving averages on Monday morning. For those that missed that chance, we had an inside day on Tuesday, followed by an inside-and-up daily rotation today.
That trade led to a nice rally on the session and now puts more potential upside in play. Specifically, I’m looking at $160-plus to put the highs in play near $161.75. Above that, and the 161.8% extension is on the table near $162.50.
Top Stock Trades for Tomorrow No. 3: BlackBerry (BB)
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BlackBerry (NYSE:BB) could have really used a strong post-earnings move on Wednesday. Instead, it’s a dud.
Shares are rallying off the lows, which is a positive, but continue to struggle with the short-term moving averages and the $9.50 zone.
On the plus side, a push through $9.60 could quickly put $10 in play, followed by the 50-day and 200-day moving averages. Above that could open the door to $12, but let’s not get too ahead of ourselves quite yet.
On the downside, however, a break of this month’s low could put $8 back in play.
Top Trades for Tomorrow No. 4: CarMax (KMX)
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CarMax (NYSE:KMX) stock opened higher on the day, but finished the day down about 7%. It’s what we call a bearish engulfing candle, as the stock completely “engulfs” the prior day’s range with a move lower.
Shares are slicing right through the 200-day moving average in the process. For now, it’s finding some support at the 10-month moving average, but I wouldn’t go all-in on it holding.
I’d rather see a larger dip down to the $122 area or a rebound back up through the 200-day. If it’s the latter, let’s see if CarMax stock can rally back up to the 10-day moving average, then the $140 level.
Below $120, and $113 may be next.
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.
