The bulls generated back-to-back sessions of 80%-plus upside volume, showing that some form of demand has returned to the market. With that in mind, let’s look at a few top stock trades as we go into the last trading session ahead of a three-day weekend.
Top Stock Trades for Tomorrow No. 1: Snowflake (SNOW)
Snowflake (NYSE:SNOW) had a nice pop on the day, rallying off its initial post-earnings selloff. However, the stock still finished lower by 4.5%.
Investors now have to keep a close eye on the $126 area. That was this month’s prior low until Thursday morning’s gap down. If $126 doesn’t hold, I believe the low near $113 remains vulnerable.
On the upside, however, the declining 10-day moving average has been resistance. If that changes, $150 and the 21-day moving average are in play. Above that puts $164 on the table.
Top Stock Trades for Tomorrow No. 2: Dollar Tree (DLTR)
What a robust trade Dollar Tree (NASDAQ:DLTR) was on Thursday, and it’s one we were looking at on the long side not long ago. What we didn’t expect was a power move back up to the gap-fill level at $155.
Up through that level now, as well as the 61.8% retracement, bulls are looking for a possible continuation to the upside. Remember, it wasn’t that long ago that Dollar Tree was a market leader before the recent retail-stock selloff.
From here, I would love to see this stock hold the $155 to $157 area as support. That keeps it above the 10-day, 21-day and 50-day moving averages, as well as the 61.8% retracement and the gap-fill mark.
On the upside, though, let’s see if it can hit the 78.6% retracement at $166. Above $170 and the $175 to $177 area is on the table.
Top Stock Trades for Tomorrow No. 3: Alibaba (BABA)
Alibaba (NYSE:BABA) had a bullish reaction to earnings, yet remains below many key levels.
Specifically, it’s still below the $100 mark, as well as the 50-day moving average. The latter has been active resistance, while the former has swayed between support and resistance over the last few months.
If it can push through this, Alibaba stock could be looking at 20% to 30% in upside — provided the stock can build on the momentum and continue to push higher. My point is, it’s been beaten down and can really squeeze higher if the buyers continue to pile in.
On the downside, however, I’d love to see the stock hold Thursday’s low at $86.73. If it can do that, it keeps Alibaba above the 10-day and 21-day moving averages.
Top Trades for Tomorrow No. 4: Macy’s (M)
Macy’s (NYSE:M) also popped higher on earnings, with shares reclaiming the 10-day and 21-day moving averages, as well as the $22.50 level. This level had been support while $28 had been resistance for about five months.
If it can hold the bottom end of this range, Macy’s could be looking at a push up to $25. Above that puts $27.50 to $28 back in play.
On the downside, though, a break of $22.50 will have investors watching Thursday’s low at $21.12. A break of that mark could put the gap-fill in play down at $19.41.
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.