What more do we want than the thick of earnings year? What about a Fed day? Let’s look at a couple of top stock trades since the markets continue to wade through what if — and may wind up being — a few true volatility.
Leading Stock Trades for Tomorrow No. 1: PayPal (PYPL)
PayPal (NASDAQ:PYPL) will report earnings after this close on Wednesday. Ahead of the report, stocks are pushing to fresh highs. That’s setting up for a challenging situation as it regards expectations.
But, PayPal was a monster and it may have to go. In case it rallies about the print, look to find out whether it can clean and maintain the 261.8% expansion, upward at $193.02. Above puts $200 in drama.
On the downside, see whether the 20-day moving average and uptrend service (blue line) buoy the stock. Here puts the two-times range expansion and also the 50-day moving average behave in play as possible support.
Below this, and PayPal may require a little more time before putting on the long run.
Leading Stock Trades for Tomorrow No. 2: Spotify (SPOT)
Spotify (NYSE:SPOT) reported earnings prior to the start on Wednesday, but the stock is fighting.
The unsatisfactory results are sapping its momentum, though bulls are giving it their very best shot. Shares finished the day down less than 2% — as you can see in the graph here, investors have bid Spotify off its launching lows.
Regrettably, however, bulls were not able to recover the 10-day and 20-day moving averages, 2 prior service marks which — at least for a day — are still acting as immunity.
Over these marks, along with a retest of this two-times scope extension is possible, up close $285. Above that, as well as the large near $300 is at the drama.
Under $250, nevertheless, and Spotify may return down to the 50-day moving average. Remember , this stock has been red hot over the last few months and may need to cool off if earnings were disappointing.
Top Stock Trades for Tomorrow No. 3: Aphria (APHA)
I highlighted a few cannabis stocks the other daybut avoided Aphria (NASDAQ:APHA) with earnings on deck. The stock moved really well over the prior two sessions, but paid the price on Wednesday.
Shares were down almost 20% on the day, and APHA stock is failing to hold the $5.25 level. Bulls will have their make-or-break opportunity soon, though.
Shares need to hold the $4.25 to $4.55 area. That’s where Aphria finds its 50-day and 200-day moving averages, along with uptrend support (blue line). The 20-day moving average comes into play just below $4.90.
The stock was looking much better lately and if bulls are serious, they will keep the trend in play. Back during $5.25, and Aphria can start to fill some of this big gap. Below $4, and this one will likely be broken for a while.
Top Stock Trades for Tomorrow No. 4: Bank of America (BAC)
After drawing some buying interest from Uncle Warren, Bank of America (NYSE:BAC) has been trading much better over the past couple of days.
This is where things can get tricky, though.
Shares have been in a steep uptrend from the lows, as shown the weekly chart above. But it’s coming into a key price area near $25.50. Just above is the 200-week moving average, near $26.
If BAC can reclaim these areas, the next upside target shifts to the declining 50-week moving average — which was resistance in June — followed by the May and June highs, near $29. Below $23 puts BAC below uptrend support, and puts the July low in play at $22.39.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not maintain a position at any of that the above securities.