It’s a busy earnings seasons for high-growth stocks and that continues after the close. That said, let’s look at a few top stock trades as a result.
Top Stock Trades for Tomorrow No. 1: PayPal (PYPL)
PayPal (NASDAQ:PYPL) earnings are due up after the close, and man, this one has been strong. Shares have climbed 58% from the March lows and hit new 52-week highs on Wednesday. That’s going to set expectations quite high for the print.
In any regard, let’s watch this one for a pullback. If shares dip — especially on great numbers — I’d love to see the $120 to $124 area hold as support. This was a recent consolidation zone, and also a breakout level over a long-term double top.
A further decline could send shares back to uptrend support, currently near $115 (blue line). Below that, and its cluster of moving averages between $106 and $110 should buoy PayPal.
Top Stock Trades for Tomorrow No. 2: Gold ETF (GLD)
What a difference a day can make. Just yesterday I considered taking a look at the SPDR Gold Trust (NYSEARCA:GLD), but wanted to wait one more day. At the time, shares were rotating over the prior day’s high, closing near the highs and clearing the 10- and 20-day moving averages.
Bulls looked like they were finally regaining some momentum. With Wednesday’s gap-down though, that constructive price action is being demolished.
On the bright side, the $158-ish area held as support. But until it reclaims the 10-day and 20-day moving averages, it’s hard to trust GLD on the long side. Especially as it makes a series of lower highs (purple arrows).
Now it’s simple. Bulls need to reclaim Tuesday’s high at $161.10, while bears need to crack the two-week low near $157. Below puts the 50-day moving average in play.
Top Stock Trades for Tomorrow No. 3: Peloton (PTON)
Like PayPal, Peloton (NASDAQ:PTON) has been on fire ahead of earnings. Shares ended the day on Wednesday up 5% on the day with earnings due up after the close.
This one has been much more volatile, falling more than 50% from the December highs before doubling off the March low.
A bullish reaction could send shares spiking into the $40s. However, a bearish reaction could trigger a pullback. On a dip, I want to see if the $35 to $36 breakout area acts as support.
On a move below this area, a dip into the low- to mid-$30s could be in play. There it will find uptrend support (blue line) near $32.50 and the 61.8% retracement near $31.
Top Trades for Tomorrow No. 4: Virgin Galactic (SPCE)
Virgin Galactic (NYSE:SPCE) stock continues to digest nicely. While it’s no longer above uptrend support (blue line), it continues to make a series of higher lows.
Now back over the 50-day moving average, let’s see if SPCE can breakout over the $20 mark. Above the April high at $21.07, and Virgin Galactic can really take flight.
Could it return all the way up to $28? With enough momentum it certainly could, considering this stock topped $40 earlier this year.
On the downside, watch for a break of the May low at $15.55. Below puts the 200-day moving average in play.
Top Trades for Tomorrow No. 5: Beyond Meat (BYND)
Beyond Meat (NASDAQ:BYND) is ripping on earnings, ending Wednesday up 26%.
With the move, BYND shares are clearing the declining 200-day moving average, which was resistance last month. Further, it’s clearing the April high at $116.64 and the 78.6% retracement for the 2020 trading range at $16.60.
So what now? Look for Beyond Meat to climb to $130 resistance. Shares failed to push through this zone earlier in the year. If it can rally this far, let’s see how it acts once more.
As crazy as it seems, $155 to $160 could be on the table if Beyond Meat can break out over $130 and gain momentum.
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.