It was a back and forth session on Thursday, with little progress made in either direction. With that in mind, here’s a look at a few top stock trades for Friday.
Top Stock Trades for Tomorrow No. 1: Morgan Stanley (MS)
Like most of the bank stocks, Morgan Stanley (NYSE:MS) is struggling to rally after reporting earnings. Shares slipped about 3% on Thursday after the company’s quarterly results.
The decline is sending shares of Morgan Stanley below $40, although it’s rebounding off the session lows. From here, the bank is sort of sitting in no man’s land on the weekly chart.
If the current low holds and shares continue to push higher, I want to see MS clear last week’s high near $42. Up near $43 is the 200-week moving average, while the 50-week and 100-week moving averages are near $44.50. These are reasonable upside targets if Morgan Stanley can clear last week’s high.
On the downside, though, I would like to see $36 hold as support. Below that puts $32 back in play, followed by a possible retest of the lows near $28.
Top Stock Trades for Tomorrow No. 2: Shopify (SHOP)
Earlier this month, Shopify (NYSE:SHOP) stock was struggling to hold the $350 level. Now after clearing $500 resistance, it’s flirting with a move to $550. This stock is a big mover and not afraid to show it.
From here, let’s see if Shopify can get up to $550. If it can, it puts a move up to the prior high near $590 in the cards.
On a pullback, however, we want to see $500 hold as support. That’s asking for a lot should the market start to correct, though. So below that mark, look to see if the $450 level can buoy Shopify on a pullback. That level has been significant in the past, while the 50-day moving average is just below at $446.
Below $446, and investors may want to let Shopify reset before attempting a long position in the name.
Top Stock Trades for Tomorrow No. 3: Rite Aid (RAD)
Rite Aid (NYSE:RAD) shares are under pressure after reporting earnings, falling more than 20%. The silver lining here is that support is coming into play right where it needs to.
It’s hard to like most retail stocks right now, short of e-commerce players and high-quality big-box retailers. Being considered a low-quality retail stock by most investors makes it hard to be a big believer in RAD stock.
That said, the 200-day moving average continues to act as support, as does the $10 level. On a dip, buyers can try to scoop up a few shares, provided RAD stays above these key levels. Below and I have no interest in owning this name.
On the upside, though, let’s see if RAD can rally back to the 100-day moving average near $13. Above that puts the 50-day moving average and downtrend resistance (blue line) in play near $14.50.
Top Stock Trades for Tomorrow No. 4: Snap (SNAP)
Snap (NYSE:SNAP) made a pretty ugly move to the downside on Thursday. Shares failed at the 50-day moving average and $14 level.
It would be bullish to see Snap reclaim these levels, putting $15-plus in play. However, that seems unlikely at the moment. That’s as the stock breaks below its rising wedge (blue lines).
When a stock has a narrowing range to the upside and breaks trend support, it’s usually a bearish technical development. From here, we need to see where Snap ultimately finds its footing. Is it at $11? How about $12? Let’s wait for the stock to reset first, then go from there. Below both marks puts $10 back in play.
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.