After a brutal two days of action — where the Nasdaq Composite fell 757 points or almost 5% — stocks stabilized a bit on Thursday. With that in mind, let’s look at a few top stock trades going into Friday. Don’t forget, we’ll get the monthly labor report tomorrow before the open.
Top Stock Trades for Tomorrow No. 1: Meta Platforms (FB)
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Facebook — sorry, Meta (NASDAQ:FB) — enjoyed some strong gains on the day, but it’s being rejected by a cluster of key moving averages.
If it can take out today’s high, that will put Meta back above the 21-day, 50-day and 200-day moving averages. If it can’t regain these levels, the stock remains vulnerable. Unfortunately, that’s just the way it is.
Back above $340 could put last month’s high in play near $352. That’s also where Meta finds the 61.8% retracement of the current range.
On the downside, however, a break of $322 could open the door to more selling pressure.
Top Stock Trades for Tomorrow No. 2: SoFi Technologies (SOFI)
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I have liked SoFi Technologies (NASDAQ:SOFI) stock in the past and the share price has now melted back below the $15 area.
In fact, SoFi looked just below the prior $13.56 level, as well as the $13.14 level — the latter being last year’s low. In any regard, the stock is bouncing nicely from these marks and is doing so with some bullish divergence on the RSI (blue arrow).
On the upside, though, bulls need to see SoFi reclaim the 10-day and 21-day moving averages to have a sustained bounce. If it can do that and clear $15, then the $16.50 level is in play, followed by the December high up at $17.91 and/or the 200-day and 50-day moving averages.
Top Stock Trades for Tomorrow No. 3: Walgreens Boots Alliance (WBA)
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Walgreens Boots Alliance (NASDAQ:WBA) shares pulled back on Thursday after reporting earnings. However, the stock had buyers down at the 10-day moving average and near $52.50.
Bouncing now, let’s see if the stock can continue to hold the 10-day. If it can, shares may push back up toward the pre-earnings levels just shy of $55.
Above this week’s high and the $56 to $57 area is on deck.
On the downside, however, a break of the post-earnings low and the 10-day moving average could put the 21-day moving average in play and the prior resistance zone near $51.
Top Trades for Tomorrow No. 4: Beyond Meat (BYND)
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Beyond Meat (NASDAQ:BYND) has been an interesting trade. Shares were under strong pressure coming into November, trading in a painful downward channel.
Once the company reported earnings though, the stock began trading even worse, breaking below channel support and watching that trend become resistance.
Even on Wednesday, the stock rallied as much as 9.3% on positive news, but finished lower by 3%. That’s an 11.5% fade from the session high! It put BYND stock at a new 52-week low, too.
In any regard, the stock jumped almost 15% on a mixed day in the markets and reclaiming prior channel support in the process, along with the 10-day and 21-day moving averages. If it can continue higher, let’s see if we can get a test of the declining 50-day moving average. Above that and prior channel resistance is in play.
On the downside, though, I don’t want to see Beyond Meat stock lose the $62 level. If it does, the low near $58 is back on the table.
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.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
