After a total beatdown on Wednesday, the market did a decent job at finding its footing on Thursday. With that in mind, let’s look at a few top stock trades for Friday — starting with the biggest of them all.
Top Stock Trades for Tomorrow No. 1: Apple (AAPL)
When we last looked at Apple (NASDAQ:AAPL), it was still holding the key $150 area. If it failed, it put the $138 zone in play. That’s exactly what we got, as shares tagged this zone and bounced.
But then, the $150 level was resistance this week as Apple now takes out last week’s low with Thursday’s dip. This once-stable name has been all over the place the last few days.
If we get a bounce from Thursday’s low up through last week’s low of $138.80, it could give bulls a juicy reversal trade — particularly if the Nasdaq cooperates with a hearty bounce. Above the 21-month moving average and this week’s high near $150 is back on the table.
On the downside, however, further erosion in the stock price puts $133 in play, followed by the mid-$120s.
Top Stock Trades for Tomorrow No. 2: Palo Alto Networks (PANW)
Palo Alto Networks (NASDAQ:PANW) reported earnings tonight and investors appeared to be spooked by the poor reaction from Cisco Systems (NASDAQ:CSCO). That’s despite clear demand for cybersecurity and the fact that Palo Alto was a clear relative strength leader until recently.
On a bullish reaction, let’s see if PANW stock can clear and hold above the $455 to $460 zone. Above the 10-day moving average opens the door to $500, then the $520 to $525 area.
This stock was at an all-time high three weeks ago and was down about 35% at Thursday morning’s low. It’s due for a bounce if the market cooperates.
However, if we get a bearish reaction, keep an eye on the $400 level, which was a big breakout spot. That’s followed by $375, which is a gap-fill level and the monthly VWAP measure.
Top Stock Trades for Tomorrow No. 3: Bed Bath & Beyond (BBBY)
Bed Bath & Beyond (NYSE:BBBY) showed some hope that it could buck the selling pressure and push higher. No such luck.
In fact, it’s been the opposite of “no such luck,” as shares have been crushed below the $12.50 support level. If it can find its footing and turn higher, this level and the declining 21-day moving average could act as significant resistance. Above it opens up $15-plus.
To get there, though, bulls will need to see BBBY stock clear $10 and the declining 10-day. If it can’t do that, then the recent low is in play near $8.50.
Top Trades for Tomorrow No. 4: BJs Wholesale Club (BJ)
Amid the retail liquidation trade over the last few days, BJs Wholesale Club (NYSE:BJ) was obliterated, falling 16% in yesterday’s session alone. Even with today’s 7.5% bounce, the stock is still down 8% for the week.
The stock dropped down into the key $52 to $55 area but held where it needed to.
On the downside, we’re seeing some interesting action as well, as the stock struggles with the $60 level. Technically, it’s the $60.25 level, by why bother splitting hairs in a tape like this. This level was last week’s low and so far, it’s acting as resistance.
If BJs Wholesale stock can’t reclaim this level, $55 or lower remains in play, along with this week’s low.
On the upside, however, a push through today’s high opens the door up to the 200-day moving average. Above that and the $65 to $66 area is on the table.
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.