Coronavirus headlines again commanded attention from investors on Thursday, in spite of a number of large earnings reports. Let’s look at a few top stock trades, as the headlines continue to fly.
Top Stock Trades for Tomorrow No. 1: Microsoft (MSFT)
Microsoft (NASDAQ:MSFT) shares were pressing higher on Thursday, hitting another all-time high. The move comes following the company’s better-than-expected quarterly results.
But what now? The stock isn’t advancing in very convincing fashion, fading from its opening levels. Shares did pullback a bit on Monday, but quickly erased those losses ahead of the print.
If shares unwind a bit more, let’s see if the 20-day moving average and channel support buoy the name once more. On a correction to this level, investors may consider buying the dip — provided the overall market remains in relatively good health.
Below these marks, though, and the 50-day moving average is in play. Should MSFT resist pulling back from current levels, see if it can ride prior channel resistance higher and take out Thursday’s high.
Top Stock Trades for Tomorrow No. 2: Altria (MO)
Altria (NYSE:MO) took another big writedown on its Juul unit and reduced its long-term earnings growth outlook. The stock responded with a selloff, which seems justified in this current environment.
So far, support is stepping up from the 100-day and 200-day moving averages, while the $46 level is hard to ignore; This is the zone to watch. Below the 100-day and $46, and MO could tumble to $44 or lower.
Above the 200-day moving average, and bulls will need to see if Altria can rally back to its 50-day moving average. If it can, reclaiming this mark and pushing to $51-plus is the next task at hand.
Top Stock Trades for Tomorrow No. 3: PayPal (PYPL)
After a lower open, PayPal (NASDAQ:PYPL) stock is doing its best to erase Thursday morning’s post-earnings losses. In doing so, the stock is reclaiming its 20-day moving average.
If it continues higher, let’s see if PYPL can clear $118 and get up to the $120 level. A move below Thursday’s low puts uptrend support (blue line) on the table. Below that, and the $110 level will be in the cards, along with the 50-day and 200-day moving averages.
With bulls back in control of PayPal — unlike the situation in Q3 — I wouldn’t mind buying on a dip to the $110 to $112 area. Below the 200-day moving average, though, and PYPL may very well be a no-touch for the time being.
Top Stock Trades for Tomorrow No. 4: Coca-Cola (KO)
Coca-Cola (NYSE:KO) continues its slow, but steady run higher. There’s something satisfying about watching an old blue-chip, slow-growth stock chug higher on a strong uptrend and trade really well.
For KO, the breakout over $55 to start the year gave the stock a much-needed boost of momentum. Shares dipped slightly ahead of earnings, but gapped up over resistance near $57.80 on Thursday on better-than-expected results.
Let’s see if the stock can hold up above this mark now. If it can, $60-plus is possible. If not, see if the 20-day moving average can support the stock on a pullback. Below that mark, and Wednesday’s low at $56.66, and uptrend support (blue line) and the 50-day moving average are on the table.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities.