There are still some big earnings reports left for Thursday evening and Friday morning, as investors look for clarity heading into the weekend. With that in mind, here’s a look at a few top stock trades now.
Top Stock Trades for Tomorrow No. 1: Amazon (AMZN)
Amazon (NASDAQ:AMZN) has been trading very bullishly over the past few weeks. The company continues to realize positive developments, and that hasn’t slipped past investors.
Shares hit new all-time highs this month and trade near them just ahead of earnings — not unlike Netflix (NASDAQ:NFLX). The question is, will it follow Netflix’s path and trade lower after it reports on Thursday after the close?
In order for the good times to last, AMZN must clear $2,450 and close above this mark. More impressive would be a move north of $2,500 though.
On the downside, a break of uptrend support (blue line) would be discouraging. However, losing the $2,300 mark would be a more bearish development. As long as Amazon stays above its 20-day moving average though, it’s hard to get too bearish. Below puts the ~$2,200 breakout level on watch.
Top Stock Trades for Tomorrow No. 2: Tesla (TSLA)
Tesla (NASDAQ:TSLA) reported much better-than-expected earnings results, and shares scorched higher as a result. However, bulls couldn’t hold onto those gains.
Shares opened north of $850 — up almost 7% — before trading up to $870 and reversing lower. Ultimately, Tesla turned negative in the session.
The price action isn’t the end of the world for bulls, but it’s certainly a punch to the gut. From here, they can risk a bit more downside before things potentially get ugly. First, let’s see if the 10-day moving average provides a lift. This level has been acting as support this month and so far, the stock remains above it.
Below that puts $700 and the 20-day moving average in play. While this area should be decent support, a drop below risks an even further move lower. Remember, Tesla stock can be a big mover — in both directions.
Top Stock Trades for Tomorrow No. 3: Gold ETF (GLD)
Gold has looked good at various times this month, but stalls out every time it seems to get going. Above is a look at the SPDR Gold Trust ETF (NYSEARCA:GLD).
In February and March, the GLD found resistance in the $158 to $160 zone. After breaking out over this level in April, it has been acting as support. With Thursday’s action though, this level is looking suspect.
For now it has given the GLD a bounce, but it’s falling below uptrend support (blue line) and the 20-day moving average. A move back over $160 would help the bulls tremendously right now, as would a rebound up to $164, the current high.
A move below current support puts $156 followed by the 50-day moving average in play. There are lot of gold bugs in this one, so if it begins to break down, it could lead to more selling as longs bail.
Top Stock Trades for Tomorrow No. 4: McDonald’s (MCD)
McDonald’s (NYSE:MCD) opened lower but is rallying off the morning lows after reporting earnings. The stock was forming a tightening wedge coming into the report (blue lines).
It was inevitable that MCD was either going to break out — likely sending it to its 200-day moving average — or break down. For now it’s the latter, although buyers have been stepping in. They did so near $180, where McDonald’s has its 20-day and 50-day moving averages.
A move back below these marks puts $170 in play. If shares can reclaim the April high at $190.41, a move up to the 200-day moving average is possible.
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.