Volatility continues to pick up pace as U.S. stocks come back under pressure. Will a more hawkish Fed drive equities back down to the lows? We’ll have to wait and see. In the meantime, let’s look at a few top stock trades for Thursday.
Top Stock Trades for Tomorrow No. 1: Microsoft (MSFT)
Click to Enlarge
The markets haven’t looked all that great over the past few days and Microsoft (NASDAQ:MSFT) hasn’t necessarily been immune either.
Microsoft stock came in hard from the fourth-quarter high after failing to push through $345. In any regard, it’s enjoyed one heck of a rally after finding support in the $270 to $275 zone. On the rally, though, it failed to reclaim the 61.8% retracement.
Now moving lower, we almost saw it break the 21-day and 50-day moving averages. Wednesday’s low is key. If Microsoft breaks this measure, it opens the door down to the $287.50 area.
A break of that mark puts the $270 to $275 support zone back on the table.
On the upside, however, I want to see a move back above Wednesday’s high. That could open the door back to $315-ish and the 61.8% retracement.
Top Stock Trades for Tomorrow No. 2: Twitter (TWTR)
Click to Enlarge
We had a long setup in Twitter (NYSE:TWTR) last week and you know what? Sometimes it’s better to be lucky than good in this game.
After erupting higher on news of Elon Musk taking a near-10% stake, we’re left with a blurry picture of Twitter stock. On the plus side, it has plenty of relative strength vs. the rest of the market.
On the downside, it continues to fail in its efforts to reclaim the 200-day moving average. In three-straight sessions, this measure has been resistance.
If it takes it out and can clear this week’s high, the upper-$50s to $62 area could be in play. Otherwise, watch this week’s low at $46.86. Below it puts the 10-day in play. Below both measures and we have to be cognizant of the gap-fill level near $41.
Top Stock Trades for Tomorrow No. 3: BioXcel Therapeutics (BTAI)
Click to Enlarge
BioXcel Therapeutics (NASDAQ:BTAI) had a pretty wild trading range today, hasn’t it? It’s one of the more speculative names I want to keep an eye on from here. Specifically, I want to keep an eye on Wednesday’s range.
A breakout over Wednesday’s high puts BioXcel Therapeutics above the $23 to $24 resistance zone and the 200-day. That could put higher prices in play pretty quickly.
On the downside, a break of Wednesday’s low would not be good. It comes right near the $18.80 level, which has been a key support/resistance level since December. However, if broken, the 50-day is next in line.
Below that and we could see the $14.50 to $15 zone again.
Top Trades for Tomorrow No. 4: Pioneer Natural Resources (PXD)
Click to Enlarge
Last but not least, we have Pioneer Natural Resources (NYSE:PXD). This has been an upside leader as energy and oil stocks have been very strong in 2022.
I flagged this name this morning as it had a really nice weekly setup. As you can see, the 50-day and 10-week moving averages have been both strong support since this uptrend began.
If we see a dip down to this area, I want to consider being long shares of PXD stock. Not only is it a great energy stock, but the trend has been strong. Until it fails, I don’t want to give up on it.
If we get the dip and support holds, I would be looking for a bounce back into the $250 to $255 area as the first trim spot.
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.
