After several strong rallies, the stock market cooled a bit on Thursday. That didn’t stop some stocks from being big movers, though. With all of that in mind, let’s look at a few top stock trades for Friday.
Top Stock Trades for Tomorrow No. 1: American Airlines (AAL)
American Airlines (NASDAQ:AAL) just went bananas on Thursday, exploding higher by more than 40% as of this writing. On the move, shares burst right through the 23.6% retracement.
As AAL stock climbs, shares are approaching the 100-day moving average. That comes into play at $17.
If American Airlines can clear this level, it puts the $20 level on watch. There it will find the 38.2% retracement. Above that, and AAL stock may rally up to the 200-day moving average — currently near $22.50.
On a decline, though, I want to see the 23.6% retracement hold as support.
Top Stock Trades for Tomorrow No. 2: Spirits Airlines (SAVE)
Spirit Airlines (NYSE:SAVE) has also been impressive, almost tripling off the lows less than a month ago.
Earlier this week, SAVE cleared the 23.6% retracement, as uptrend support (blue line) continues to drive it higher. Now, SAVE stock is approaching a critical level near $22.50.
Near this mark, shares find the 100-day moving average and 38.2% retracement. If I’ve been long from sub-$10, I would be taking at least some profits into this zone. On a pullback, however, see that uptrend support holds as support. Below puts the 23.6% retracement, as well as the 20-day and 50-day moving averages in play.
Top Stock Trades for Tomorrow No. 3: Alibaba (BABA)
Alibaba (NYSE:BABA) has been ripping back to life, bouncing hard off the 200-day moving average after a post-earnings shake-out late last month.
After holding the 50-day moving average, shares reclaimed the 20-day moving average and jumped higher. That rally has sent Alibaba stock into $220 resistance and the 78.6% retracement near $218.
This puts the stock in an interesting position. If shares pull back, I want to see the 20-day and 50-day moving averages hold as support. While the setup is still okay on a slightly deeper dip, it would be more bullish to see these marks hold as support.
On a breakout, though, let’s see if Alibaba can rally up to the prior highs near $230.
Top Trades for Tomorrow No. 4: Dave & Buster’s (PLAY)
Pat yourself on the back if you were one of those buying Dave & Buster’s (NASDAQ:PLAY) when it was under $5.
Now near $20, PLAY has been a four-bagger, as it hits its highest level in almost three months. Shares are breaching the 38.2% retracement on Thursday, putting the 100-day moving average in play near $24. Perhaps most impressive is the volume over the past two days.
On the downside, however, I want to see the 20-day and 50-day moving averages hold as support. Below that, and the 23.6% retracement is possible.
Top Trades for Tomorrow No. 5: Broadcom (AVGO)
It took awhile, but Broadcom (NASDAQ:AVGO) finally came back to life. Last week, AVGO broke out over resistance and the 200-day moving average. Shares then consolidated, and rallied over $300.
With earnings on deck, Broadcom is at an interesting juncture. I want to see either a breakout or a pullback, and it doesn’t matter which.
On a dip, look to see if AVGO holds support near the 200-day moving average and the $275 area. Below puts the 50-day moving average in play.
On the upside, I want to see a rally up to $320. If AVGO clears this mark, it must close above it as well. Otherwise, it may still act as resistance.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, he did not hold a position in any of the aforementioned securities.