Earnings season is getting ready to ramp up, with some big-name companies set to report. Here’s what to watch for with our top stock trades.
Top Stock Trades for Tomorrow No. 1: Advanced Micro Devices (AMD)
Advanced Micro Devices (NASDAQ:AMD) shares have been churning higher over the last few months, continually hitting its head on resistance between $58 and $59.
With Wednesday’s potent breakout, AMD stock is more than 8% higher. On a pullback, see that AMD finds support at $58. If it fails, the 20-day and 50-day moving averages are next on the list.
On the upside, keep an eye on the 123.6% extension at $64.58, then the 138.2% extension up at $67.87. For longer-term investors who use technicals, the 161.8% extension up at $73.19 is a potential upside target down the road.
Top Stock Trades for Tomorrow No. 2: Microsoft (MSFT)
Of the notable earnings reports on Wednesday night, Microsoft (NASDAQ:MSFT) is among the biggest.
Shares are rebounding after last’s week’s dip, but continue to hover well below the current high near $216.40. On a bullish reaction, traders will be looking for a rotation over this mark, putting the 161.8% extension in play up near $225.
On the downside, see if the 20-day moving average acts as support, followed by the 123.6% extension near $203, (this mark has been resistance and support recently). Below that puts the 50-day moving average in play.
This could be a notable earnings report, as Microsoft is the first among the mega-cap tech stocks to report.
Top Stock Trades for Tomorrow No. 3: Pfizer (PFE)
We took a look at Pfizer (NYSE:PFE) in June and did not like the stock after that huge plunge below the 200-day moving average.
Shares floundered for a bit as the stock price ground lower. Ultimately, though, buyers have been stepping up in a big way. A series of gap-up opens have fueled PFE back up to $38.
The $38 area was a stiff area of resistance in April and May, so it will be notable if bulls can clear this mark. If they do, it puts the 2020 highs in play just below $40.
On the flip side, however, the stock has now filled the initial June gap-down and is running into resistance. So to see a pullback wouldn’t be surprising. In that case, see if buyers step in near $37. Below could open the door to a retest of the 50-day and 200-day moving averages near $35.50.
Top Stock Trades for Tomorrow No. 4: Slack (WORK)
After its gap-down action in early June, Slack (NYSE:WORK) has struggled. There are pros and cons, but not a lot of direction at the moment.
On the plus side, shares are above prior resistance near $30 and continue to hold this mark as support. Furthermore, uptrend support (blue line) continues to buoy the stock price as well.
On the bearish hand, though, shares are below the 20-day and 50-day moving averages, and continue to struggle with $34.50 resistance after the gap-down.
To put the momentum back in bulls’ favor, we need to see a rotation back over these two key moving averages and a close over $34.50. Above puts the July high in play at $36.23. Incidentally, that’s also where the 78.6% retracement (for the entire range) comes into play.
Above that mark puts a gap-fill in play up to $38. Below $30, though, and the bears can harness momentum.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, is long AMD.