Stocks were hammered off the open and traded through a choppy Thursday following commentary from the Fed on Wednesday. With that in mind, let’s look at a few top stock trades going into Friday.
Top Stock Trades for Tomorrow No. 1: Twilio (TWLO)
Twilio (NYSE:TWLO) was a fan favorite after shares erupted in May and surged to almost $300 per share in early August.
However, at the start of this month, support began to wane. Shares broke below the 20-day and 50-day moving averages, as well as uptrend support (blue line).
After finding support near $220, shares gapped below this mark on Thursday, before finding their footing at the 100-day moving average. Now we have to see if support holds and if Twilio can reclaim the $220-ish area.
Below Thursday’s low at $216.23 and TWLO could retest the $200 to $205 breakout area. Below that could put $180 on the table.
On the upside, we need to see shares reclaim short-term support. Above puts the 20-day and 50-day moving average in play as the next level to watch.
Top Stock Trades for Tomorrow No. 2: Micron (MU)
Micron (NASDAQ:MU) has been somewhat resilient as of late. Shares gapped above the 50-day moving average, then reclaimed the 200-day moving average.
I am looking for Micron to take out its two-day high now and push toward $52. Above $52 puts $54 to $55 in play, as a potential pre-earnings move could be in the cards.
On the downside, I do not want to see a drop below this week’s low at $48.30. That puts the stock below the 200-day moving average and while still technically above the 50-day, it could trigger a gap-fill down toward $46.
I like the relative strength Micron is showing in the face of a market-wide decline, but we need to see some rotation now.
Top Stock Trades for Tomorrow No. 3: Ford (F)
I have been noting the better price action in Ford (NYSE:F) for a while now, even though its fundamentals are still a mess thanks to the novel coronavirus.
Shares continue to grind higher, now above all of its major moving averages and uptrend support (blue line).
Like Micron though, we want to see commitment. That may come from a monthly rotation over August’s high at $7.38. Above that opens to the door to the June high at $7.74.
Above that, and perhaps Ford can begin to fill the gap between $8.50 and $9.
On the downside, a break of $6.75 would be highly concerning. That puts the automaker’s stock below all of its major moving averages and trend support.
Top Trades for Tomorrow No. 4: Inovio (INO)
Inovio (NASDAQ:INO) has been raging higher lately, rallying from about $10 to more than $18 at one point this week. Now things get interesting.
On the one hand, shares filled the gap from August and are now struggling to hurdle the 50-day moving average. For now, that may leave bulls taking some profit (assuming they were long) and waiting for confirmation before putting more money to work.
That confirmation comes from a close over $18 and the 50-day moving average. That could put $23 to $24 in play on the upside, followed by a possible move to the $27.50 to $28 area.
On the downside, however, consider using $14 as a reference point. It was resistance on Tuesday and support on Wednesday and Thursday. Below puts the 20-day moving average in play, followed by the 200-day moving average.
Below that, and the $9 area is on the table.
Top Trades for Tomorrow No. 5: U.S. Steel (X)
U.S. Steel (NYSE:X) is putting together a solid move on the day. It’s got shares rallying above range resistance between $8 and $8.25 and trading up into the 200-day moving average.
If X can close above the 200-day, it puts the potential for a gap-fill rally up toward $9.25. Should shares really gain momentum, it could put the June high in play near $11.
If the 200-day moving average acts as resistance, I would love to see $8 to $8.25 act as support. It would be a bullish development to see a former level of resistance act as support.
Below that range puts uptrend support in play, followed by range support near $6.50.
On the date of publication, Bret Kenwell held a long position in MU.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.