It was a sluggish day in the markets, as investors turn their attention to Friday — which is a quad-witching day. It’s one of four events this year, as we get a shuffling of various index, options and futures contract rolls. And despite what could be a bumpy Friday morning, let’s look at a few top stock trades.
Top Stock Trades for Tomorrow No. 1: Carnival Cruise (CCL)
Carnival Cruise (NYSE:CCL) crept lower, but did not plunge despite releasing disappointing preliminary Q2 results.
The chart here highlights the stock’s explosive move from the May low to the June high. Shares topped out near $25 after failing to reclaim the 38.2% retracement.
Shares are now teetering on the 20-day moving average and uptrend support (blue line). Furthermore, they are clinging to the 23.6% retracement. I’d love to see CCL hold this area on disappointing news, which would only strengthen the bulls’ case.
If it can, look for a rotation back over $20. Over $20, and $22 is possible, followed by the 38.2% retracement. If support fails, though, $15 and the 50-day moving average could be back on the table.
Top Stock Trades for Tomorrow No. 2: Microsoft (MSFT)
Microsoft (NASDAQ:MSFT) continues to hover near all-time highs, but is having trouble pushing through the $196 area. You can feel the bullish momentum stirring below the surface, if only the stock could breach resistance.
To be honest, Microsoft’s hesitation is concerning — at least in the short term. If bulls were really in control, they would thrust this name over $196, push through the current high near $198.50 and see how MSFT handles $200.
It’s possible this still happens. And if it does, see if they can push the 123.6% extension up near $203, then the 138.2% extension up near $211.60.
That said, a dip down to the 20-day moving average and the prior breakout level would be an attractive buying opportunity — provided support holds.
Top Stock Trades for Tomorrow No. 3: Nikola (NKLA)
Despite all the recent negativity, Nikola (NASDAQ:NKLA) stock continues to hold up. I do not care for the fundamentals, but it’s hard to ignore the technicals.
When a stock doesn’t go down on bad news and the fundamentals don’t support it, then it gets my attention.
Right now, I’m watching $69. Above that, and NKLA will rotate over Wednesday’s high. It didn’t happen on Thursday, so it puts a two-times daily rotation in play for Friday.
In any regard, a move over this mark could put the squeeze on, putting the $75 to $80 zone in play. That was a gap-down level from earlier this month. If NKLA can’t get there, however, it could put $73.50 in play, which is this week’s high.
This one is volatile, but could be rewarding.
Top Stock Trades for Tomorrow No. 4: Salesforce (CRM)
I was not necessarily looking for a big move out of Salesforce (NYSE:CRM) today, but I flagged the setup before the open. I was looking for a rotation over last week’s high at $182.50, then a rotation over $184.80 to add to the position.
We got both today, with shares pushing through short-term resistance. And while CRM is backing off the session highs a bit, the action is very healthy for bulls looking for a larger move.
Investors late to the party may get a dip on Friday. And if these prior rotation levels hold as support, it could be a buying opportunity. Below puts $170 back in play.
On the upside, though, investors are looking for a move over $190 and up to the prior highs near $195. Above that puts $200 on the table.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret is long CRM.