Stocks gapped higher on Wednesday ahead of the Federal Reserve meeting, where we didn’t hear anything too out of the realm of what was expected. Will that help stabilize markets a bit or will it unleash more selling pressure? We’ll find out. For now, though, let’s look at a few top stock trades as we’re in the thick of earnings season.
Top Stock Trades for Tomorrow No. 1: Microsoft (MSFT)
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Microsoft (NASDAQ:MSFT) gapped higher right into resistance following better-than-expected earnings. We were expecting a fade and got one, but the key here will be whether Microsoft can close above $300 and the 10-day moving average.
That will likely be determined by how the overall market handles the Fed’s news and ensuing press conference in the afternoon.
Below $300, and we have to look at the potential gap-fill near $295 and a tag of the 200-day moving average. Below both of these measures, and the 50-week is on deck.
On the upside, however, a move above Wednesday’s high puts the declining 21-day moving average and the daily VWAP measure in play. Above that, and $320 is a possibility.
Top Stock Trades for Tomorrow No. 2: Tesla (TSLA)
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Tesla (NASDAQ:TSLA) reported earnings tonight. It has already bounced back off the lows nicely, but it’s struggling with the 10-day.
If the stock pushes higher on Thursday, we have to keep the $1,050 area in mind. Why? Not only is that channel resistance and the daily VWAP measure, but it’s also the 21-day and 50-day moving averages.
Above those levels could put the December high in play up near $1,117.
On the downside, however, keep last month’s low in mind at $886. Below that puts Monday’s low back in play at $851.50, followed by channel support and the 200-day.
Top Stock Trades for Tomorrow No. 3: AT&T (T)
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AT&T (NYSE:T) was enjoying quite the rally but is got smacked on Wednesday after the company reported earnings. In turn, shares fell about 8.5% on the day.
It’s not too surprising to see AT&T get hit, as it was failing at multiple areas on the chart. However, it is disappointing not to see any moving averages come to its rescue.
If it can hold the 50-day, perhaps a rebound back up to $26 is in the cards. On the downside, though, keep an eye on $24.
A close below this level and a failure to get back above it could put the low-$20s back in play.
Top Trades for Tomorrow No. 4: Advanced Micro Devices (AMD)
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One of the big winners this fall was Advanced Micro Devices (NASDAQ:AMD), as shares raced to all-time highs. We’ve since seen shares lose more than one-third of their value, falling in eight of the last 10 weeks.
Now trying to find its footing around the 200-day moving average, bulls are paying attention.
Aggressive longs will consider a position now with a stop-loss just below this week’s low.
Others may consider long position after an undercut of Tuesday’s low followed by a reversal back up through this mark, in an effort to get long with less risk. In any regard, the $117 level has been resistance this week and last week’s low at $118.39 still looms.
Back above these levels, and the 10-day moving average could put a larger rally in play. But for now, this one is simply trying to find some support. A break and close below this week’s low could put the 50-week in play, followed by the $100 zone.
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.
