A day after the announcement of the Federal Reserve and the market it is still not fixed which direction to go. This morning’s gap-ups sold out-I don’t like gap-ups during the downtrend-and now we’re back to normal. Let’s take a look at some of the top stock trades coming in by the end of Friday.
Note: $ 100 may be in the game now for Advanced Micro Devices (NASDAQ:AMD).
Top Stock Trades for Tomorrow No. 1: Apple (AAPL)
Apple (NASDAQ:AAPL) went to its post-market earnings after enduring its eighth consecutive daily losses on Thursday.
On the upside, the shares are holding ~ $ 157 high from the third quarter, as well as the 21-week moving average. Obviously earnings are likely to have an impact here though.
If Apple stock has a bearish post-earnings reaction and cuts to this week’s low, it could put the $ 150 level and the 200-day moving average into play. Slightly below that puts the $ 145 high from January 2021, along with the 50-week moving average.
Conversely, a rally could put the $ 168 to $ 170 zone into play, with 21-day and 50-day moving averages coming in near the end of that zone.
If we catch up, see if the stock can make its gains or if it is lower. With its $ 2.6 trillion market capitalization, Apple will have little weight in the indices tomorrow.
Top Stock Trades for Tomorrow No. 2: McDonald’s (MCD)
McDonald’s (NYSE:MCD) places fourth consecutive daily decline and 12th loss in the last 14 sessions.
Why did I highlight this one? Well, this is not a great trading setup at the moment. However, there is one setup I would like to point out.
This is one of the few stocks I watch before opening, as shares decline. But it wasn’t the gap-down that got me interested; this is where the stock is gapping down to.
If the shares are reduced or traded below the December low near $ 244, it has a 200-day moving average just below that. A 200-day tag and a withdraw of last month’s lowest-two notable levels-would be an attractive entry.
Known as a reversal, this may have given the bulls an attractive risk/reward setup. This is something I want to point out to other traders, as it is often missed in the midst of the excitement of the trading day.
Top Stock Trades for Tomorrow No. 3: ServiceNow (NOW)
Service Today (NYSE:NOW) opened higher by more than 14% and rallied about 15% to the highest, but is now up about 9% on the day. Honestly, that’s nice in this environment even if the chart doesn’t seem inspiring.
From here, see that the stock holds the 10-day moving average. Below this is placed last week’s lowest in gaming near $ 507. If that level fails, $ 485 is on the table, a level that has been supportive over the past three days.
Conversely, see if the NOW stock can continue today’s high and the declining 21-day moving average. If possible, the weekly VWAP measure and 50-week moving average are in play.
That is followed by the 200-day moving average and the pivotal $ 290 area.
Top Trades for Tomorrow No. 4: Lucid Motors (LCID)
Lucid Motors (NASDAQ:LCD) has been hammered recently, down 34% over the past six sessions and approximately 14% today.
Now that the $ 35 spot has failed as support, shares are plummeting. However, the Lucid stock is trading in the previous breakout area between $ 27.50 and $ 30, as well as the 50-week and 200-day moving averages.
I’m not too much of a fan of Lucid Motors when the technicals break, but if the bulls are interested in this name, it might be an area to pay attention to. If it fails, that’s one thing, but if we get a bounce on this one, I wouldn’t be surprised if it comes from this zone.
More conservative traders will wait for it to recover $ 30 and I can’t blame its makers.
At the date of publication, Bret Kenwell does not (whether directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the authors, subject to InvestorPlace.com Publishing Guidelines.
Bret Kenwell is the manager and author of Future Blue Chips and on Twitter @BretKenwell.