The bulls answered the call on Wednesday, driving stocks higher following the FOMC Minutes release this afternoon. With that in mind, let’s look at a few top stock trades for Thursday, as the S&P 500 tries to snap a seven-week losing session.
Top Stock Trades for Tomorrow No. 1: Nvidia (NVDA)
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With one glance at the chart, investors can tell Nvidia (NASDAQ:NVDA) is trying to bottom in the $155 to $160 area. With earnings set to be released after the close tonight, it will either make or break this support zone.
If we get a bullish post-earnings pop, I’ll be watching the 21-day moving average and $185 area. Most recently, the latter was resistance earlier this month after acting as support. Above that opens the door to the $195 to $200 area, then $210.
On the downside, I really don’t want to see Nvidia lose the $150 mark. That thrusts it below a lot of key areas and measures. If it does so — and closes below it — we’ll need to re-evaluate this stock.
Top Stock Trades for Tomorrow No. 2: Dick’s Sporting Goods (DKS)
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Dick’s Sporting Goods (NYSE:DKS) is all over the place on Wednesday. First, it gapped down and plunged lower on earnings, then spike higher. At one point, shares were down more than 10%, then up more than 14%.
Now we’re in a pickle.
Dick’s stock bounced hard off the 200-week moving average, but it’s now running right into active resistance via the 10-week moving average. Talk to any technical trader and they’ll put more weight into the 200-week than the 10-day. However, it’s hard not to point them both out.
If Dick’s can clear the 10-day and today’s high, the gap-fill level is in play at $87.31, along with the key $92 area and the declining 21-day moving average. On the downside, if it trades below $69.50, the low could be back in play.
Top Stock Trades for Tomorrow No. 3: GameStop (GME)
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GameStop (NYSE:GME) had some fire on Wednesday, ripping over last week’s high and climbing almost 30% in the session.
Now it faces two keys measures via the 10-week and 21-week moving averages. If we can clear that zone near $120, it technically opens the door up to the $150 to $160 area.
On the downside — and we’d need a big drop to do it — a move below this week’s low opens the door back down to $78, then the 200-week moving average.
Top Trades for Tomorrow No. 4: Toll Brothers (TOL)
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Toll Brothers (NYSE:TOL) is up almost 8% after reporting earnings. In doing so, it’s pushing through the 50-day moving average and downtrend resistance.
If it can continue higher, $50 to $52 is in play. There we find the 23.6% retracement, the May high and the declining 21-week moving average.
On the downside, $44 is must-hold support. Not only is it where Toll Brothers has been finding support lately, but it’s also where we have the 200-week moving average and the 50% retracement from the 2021 high down to the March 2020 Covid-19 low.
On the date of publication, Bret Kenwell held a long position in NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
