Equities shook off morning coronavirus-related weakness, as the SPDR S&P 500 ETF (NYSEARCA:SPY) notched another record high. That said, let’s look at a few top stock trades for Friday.
Top Stock Trades for Tomorrow No. 1: Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) shares have been bursting higher this week, hitting new 52-week highs as bulls feel good ahead of earnings after the close Thursday. Of course, the three-day consolidation doesn’t show up on the weekly chart here, which instead highlights the stock’s incredible momentum since August.
Because of the latest rally, bulls have some cushion in the event of a pullback. On a dip, I want to see shares hold up over $250. However, as long as NVDA maintains above uptrend support (blue line) and the 10-week moving average, it’s okay on the long side.
On a bullish reaction, see if NVDA can close above $280. Above $280 puts the all-time high near $291 on the table.
Top Stock Trades for Tomorrow No. 2: Roku (ROKU)
On Monday, Roku (NASDAQ:ROKU) jumped more than 6%. While Tuesday’s rally looked promising, the stock fizzled out from its intraday highs. Here’s the good news, though: Tuesday’s rally propelled Roku over the 50-day moving average and multi-month downtrend resistance (blue line).
While the market and many of Roku’s growth peers have been plowing to new all-time highs, the stock has continued to trend lower.
Over the past few sessions, Roku stock has been trading in a tight consolidation range. This week’s action bodes well for bulls. Like Nvidia, Roku now has some cushion ahead of Thursday’s earnings report after the close.
I would love to see ROKU hold the backside of prior downtrend resistance near $130, but that’s a tight range for a volatile name. On the downside, the must-hold level is between $117 and $120. That’s been notable support since August, while the 200-day moving average is just under $122.
On the upside, I want to see if Roku can clear and hold $150. Over it, and $170-plus is on the table.
Top Stock Trades for Tomorrow No. 3: Microsoft (MSFT)
After shares broke out over resistance in October, Microsoft (NASDAQ:MSFT) has been undergoing an orderly rise for months now. However, late last month, that rise has become very disorderly and explosive.
In just a few weeks, we’ve seen a huge rally in MSFT. Over Thursday’s high, and the all-time high of $190.70 is on the table. Above that, and $200 is possible.
On a pullback, see if the $175 level and 20-day moving average buoy the share price. Below puts $168, uptrend support (blue line) and the 50-day moving average on the table. This deeper pullback would be a healthy dip-buying opportunity, although that doesn’t mean it will materialize.
Top Stock Trades for Tomorrow No. 4: Rite Aid (RAD)
The long case for Rite Aid (NYSE:RAD) is playing out surprisingly well. The $11 mark held as support, as did uptrend support (blue line) and the 50-day moving average.
Now that RAD is through our first target of $14, the $16 to $17 zone is on the table as the next possible upside area to watch. Above that, and a squeeze toward $20-plus is possible. On the downside, it would be discouraging to see RAD below its 50-day moving average and uptrend support.
With a volatile name like RAD, though, keep it simple and disciplined.
Top Stock Trades for Tomorrow No. 5: Centurylink (CTL)
Many investors are discouraged with Centurylink (NYSE:CTL) on earnings, with shares down more than 8%. However, the charts are still okay, technically speaking.
Shares are bouncing from the morning lows, now holding up above the 50-day moving average. That’s a good sign, but the more important mark for me is uptrend support (blue line). Above this, and CTL is fine in my book. Below puts the 200-day moving average on watch.
On the upside, see if CTL can reclaim the 20-day moving average. Above puts a gap-fill up to $15 on the table, as well as a test of resistance at $15.25.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long NVDA and ROKU.