The stock market started off under pressure on Wednesday, and the selling only accelerated into the afternoon. That said, let’s look at a few top stock trades as we roll into Thursday.
Top Stock Trades for Tomorrow No. 1: Amazon (AMZN)
Shares of Amazon (NASDAQ:AMZN) are starting to stall, despite running up to new all-time highs on Wednesday.
The move sent the stock up to $2,800 and the two-times range mark (measured from the March low to the February high). It’s got investors wondering if AMZN can withstand a potentially larger market selloff or if shares are bound to come down as well.
On a mild pullback, see if AMZN can hold the 10-day moving average and $2,650 area. Below puts the 20-day moving average in play, and possibly the $2,500 area. There Amazon finds a notable breakout level, as well as the 161.8% extension. I would love a dip to this zone as a potential buying opportunity.
A close above Wednesday’s high, however, puts a move toward $3,000 on the table.
Top Stock Trades for Tomorrow No. 2: Alpha Pro Tech (APT)
Alpha Pro Tech (NYSEAMERICAN:APT) has been heating up lately, as the number of U.S. and global coronavirus cases continue to climb.
In just a few sessions, shares went from $5 to $40 before settling down in March. Since then, APT has struggled with the $17.50 level, a mark it cleared on Wednesday. From here, the roadmap is clear.
On the downside, APT must hold the $17.50 mark as support. Below puts the 20-day and 50-day moving averages back in play, followed by $10.
On the upside, see if the stock can clear $20 and the 38.2% retracement. Above puts the 50% and 61.8% retracements on the table near $25 and $29, respectively. If APT clears the latter, perhaps a retest of the highs is possible.
Top Stock Trades for Tomorrow No. 3: Lakeland Industries (LAKE)
Earlier this month, Lakeland Industries (NASDAQ:LAKE) shares gapped higher and the stock has been consolidating in a tightening wedge ever since (blue lines).
With shares resolving to the upside, it’s got bulls excited. I missed this one, but it’s a beauty of a chart.
Now, see if LAKE stock can close above the June high at $23.99. Below it doesn’t mean bulls lose control, but it adds an additional speed bump to the trade, at the very least.
Above $23.99 and the 78.6% retracement is in play, up at $24.67. Technically, Lakeland shares eclipsed this mark on Wednesday, but we want to see a close over it. Above the 78.2% retracement puts the high in play near $28.
On the downside, a move below $20 puts prior range resistance in play at $18.
Top Trades for Tomorrow No. 4: Rite Aid (RAD)
Rite Aid (NYSE:RAD) will report earnings before the open on Thursday. Surprisingly, for as much hate as Rite Aid gets, this stock isn’t dead yet.
For bulls, they’ll need to see RAD stock reclaim the 20-day and 50-day moving averages. Above that puts downtrend resistance (blue line) in play, opening the door to $16 and possibly even $20.
The downside is where bulls need to be careful. If Rite Aid stock loses the 200-day moving average and closes below $11, then all bets are off. In that scenario, the March lows are in play near $9.25. Below that and a December gap-fill toward $8.50 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.