After two big upside days for stocks, the market struggled to hold onto its gap-up gains on Wednesday, and understandably so. With that in mind, let’s look at a few top stock trades going into Thursday.
Top Stock Trades for Tomorrow No. 1: Tesla (TSLA)
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Tesla (NASDAQ:TSLA) has traded incredibly well over the past three days, up almost 13% from Monday’s low.
Wednesday’s rally was enough for Tesla stock to break back out over the 10-day, 21-day and 50-day moving averages, as well as channel resistance (blue line).
Now contending with the 61.8% retracement, let’s see what Tesla does from here.
If it dips, that’s fine — particularly after such a lofty run. However, bulls will need to see the stock hold the 50-day moving average for it to remain constructive. If it loses the 21-day, we could see last week’s low at $1,020.
On the upside, however, a move over the 61.8% retracement opens the door to the December high near $1,172. Above that, and this month’s high is in play near $1,200.
Top Stock Trades for Tomorrow No. 2: Procter & Gamble (PG)
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This one is not as exciting, but Procter & Gamble (NYSE:PG) deserves a look. Here is a daily chart with the weekly measures overlaid, but that doesn’t clearly show that PG stock had risen in 10-straight weeks before this dip.
We have an inside day on Wednesday, so that could give bulls potential for an inside-and-up rotation. Given the strength we’ve seen in this name, that’s not the worst setup in the world.
However, I would much rather have an inside-and-down rotation below today’s low. Why? Because that could set up the stock for a test of the 10-week moving average, which gives us a better risk/reward setup.
Either way, P&G is one to keep on your radar for the time being.
Top Stock Trades for Tomorrow No. 3: Ethereum (ETH-USD)
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Ethereum (CCC:ETH-USD) broke down earlier this month, falling hard in four-straight sessions and losing almost 20% from peak to trough during that stretch.
However, Ethereum found its footing around $3,000 and the weekly VWAP measure and is now ripping higher. The question becomes, can it get back up through the declining 10-day moving average, the rising 200-day and the prior December/flash crash low near $3,330?
For now, the answer is yes — well, partially — but it’s not clear if it will remain that way going forward.
If Ethereum can push higher, it puts $3,650 in play. If it rolls over, it puts $3,000 back on the table, as well as the most recent low near $2,930. A break of that mark could put $2,500 to $2,650 in play.
Top Trades for Tomorrow No. 4: Boeing (BA)
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Boeing (NYSE:BA) looked like it was going to take flight on Wednesday but then ran out of steam after its initial burst higher on the open.
Boeing traded really well yesterday, bouncing hard off the 50-day. The stock had a short but clear bull flag consolidation going on — even with Tuesday’s rally — so this morning’s rally made it look like Boeing could rip higher.
Unfortunately, the stock could not hold onto its weekly-up rotation. From here, the action is just OK. I want to see Boeing take out the $219 level, which is roughly last week’s high. Above that puts Wednesday’s high in play, followed by the 200-day.
On the downside, though, a break lower could put the December high in play near $212.70, as well as the 10-day moving average.
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.
