Equities opened for trading under significant pressure on Thursday, but bulls bid the market back up. Here’s a look at a few top stock trades to watch for Friday.
Top Stock Trades for Tomorrow No. 1: JPMorgan (JPM)
The banks have been getting killed, but they made a nice bounce on Thursday. JPMorgan (NYSE:JPM) was among the movers putting in a strong rebound.
Shares bounced hard off support at $82.50. However, they are not all that far from the declining 20-day and 50-day moving averages. In particular, the 50-day has been stiff resistance over the last month.
If that remains the case and the 50-day rejects JPM, expect a possible retest of the $82.50 level. Should that level fail as support, JPMorgan could retest the March lows near $77.50.
Above the 50-day moving average could put downtrend resistance in play (purple line). Above that, and $100 is possible.
Top Stock Trades for Tomorrow No. 2: Cisco Systems (CSCO)
Cisco Systems (NASDAQ:CSCO) stock ended Thursday up 4.5%, after better-than-expected earnings. However, the charts don’t look as constructive as bulls would have liked.
Cisco is being rejected by the 200-day moving average. While it’s still up on the day and holding up over the $43 mark, clearing this level would have made the stock much stronger from a technical perspective.
However, it’s okay so long as it maintains above the 20-day moving average and uptrend support (blue line). A move back over the 200-day would be much better for bulls looking at it as a buy.
Above $46, and $49 is possible. Below support, and the 50-day moving average is on the table.
Top Stock Trades for Tomorrow No. 3: Facebook (FB)
Facebook (NASDAQ:FB) has been strong off the March lows, but has been struggling over the past few sessions. Shares bounced off the $200 mark this morning, but concerns still linger from a technical perspective.
If FB stock loses the $200 level and 20-day moving average, a quick flush into the low-$190s is possible. Not only would it fill the post-earnings gap from April, but it puts the 61.8% retracement and 200-day moving average in play.
I expect that to act as support for Facebook, but if it doesn’t, it puts the 50-day moving average in play near $178. On the upside, see if FB can reclaim downtrend resistance (blue line). Above puts the April highs near $215 back in play.
Top Trades for Tomorrow No. 4: Livongo (LVGO)
Livongo (NASDAQ:LVGO) has been scorching hot lately, surging from $20 in March to more than $60 currently.
This stock has been a rocket ship — one I personally don’t want to short. That said, it’s tough to buy a stock that has already tripled. I am looking at two levels right now, at least when it comes to the daily chart.
I want to see how LVGO responds to an eventual test of the 20-day moving average. The last test of this level resulted in a powerful rally. Below that, and I would love a chance at $45 — assuming it holds as support.
Top Trades for Tomorrow No. 5: Alpha Pro Tech (APT)
Alpha Pro Tech (NASDAQ:APT) caught traders’ attention on Thursday, with shares rocketing higher by more than 24%.
The stock largely held its 20-day and 50-day moving averages as support before breaking out over downtrend resistance (blue line) on Thursday. It puts the $17.50 level as the first upside target and the $20 mark in play above that.
On the downside, investors don’t want to see this one break back below $12.50.
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.