The bulls showed back up to fight on Thursday after stocks initially rolled over in the morning session. With that in mind, let’s look at a few top stock trades as we finish out the week.
Top Stock Trades for Tomorrow No. 1: Ford (F)
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Ford (NYSE:F) was one of the best-performing auto stocks for a bit of time. Now, it’s fallen by the wayside. And this week has not been pretty for Ford, either.
After holding the 50-week moving average through this year’s correction thus far, it failed this week. The stock is now down into the 50% retracement of the full range — from the Covid-19 low to the recent high.
If Ford bounces, look to see if it can climb back to the 50-week moving average. Keep in mind this measure may be resistance. If shares continue lower, the 61.8% retracement and $12.50 support level could be on deck.
Top Stock Trades for Tomorrow No. 2: Pfizer (PFE)
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Pfizer (NYSE:PFE) has been trading well over the past few days, as longs can attest. With the rally, it was able to reclaim its 10-week and 21-week moving averages.
Now it’s sitting in an interesting place, though. Pfizer is sitting at last month’s high of $55.30 with the 61.8% retracement less than 20 cents higher.
If we can get a rotation to the upside — and this is a big “if” — then more upside could be in play. Specifically, I’d be looking at $58.50 as my next upside target, then $61 to $62.
If the stock pulls back, that’s OK. But I want to see it hold $53.50 in that case.
Top Stock Trades for Tomorrow No. 3: Walmart (WMT)
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Walmart (NYSE:WMT) has been an absolute beast lately. Now up in 10 out of its past 11 sessions, it’s clearly in breakout mode. So, what would I like from here?
I would love to see Walmart stock dip back into the $152s and time up with a test of the 10-day moving average. That would give dip-buyers a reasonable risk/reward to get long.
If that sets up and holds as support, this week’s high becomes the first upside target near $157.50. Above that could open the door to the $165 zone.
However, if Walmart loses $150, bulls have to look for a possible test down to the 21-day moving average.
Top Trades for Tomorrow No. 4: Raytheon (RTX)
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Defense stocks have been trading well lately. And while Raytheon (NYSE:RTX) is lagging some of its peers in terms of rotation, it’s still looking OK.
With a nice little falling wedge pattern in play, shares are breaking to the upside and reclaiming the 10-day and 21-day moving averages in the process.
I would love to see a daily-up rotation tomorrow for a potential long trigger, particularly if it can clear and hold above the 61.8% retracement.
That would put $102.50 to $103 in play, then potentially $106.
Below the 21-day and this one loses my interest.
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.
