After falling in three-straight sessions despite new all-time highs on Monday, equities found their footing and rallied on Thursday. Will the momentum last into the weekend or is it just a dead-cat bounce? With all of that in mind, let’s look at some top stock trades for Friday.
Tesla (NASDAQ:(TSLA)) has been stalling lately, working on its fourth-straight daily decline and its eighth decline in the past nine trading sessions. CEO Elon Musk’s comments toward Bitcoin (CCC:BTC-USD) don’t seem to be helping either.
In any regard, shares are breaking below this week’s low, as well as the 200-day moving average.
This would be a natural spot for bulls to push for a reversal and given the bounce we’re seeing from the lows, it’s clear that’s what they’re trying to do. If they can, look for Tesla to reclaim the 200-day moving average.
Confirmation would come on a daily-up reversal over Thursday’s high.
If they can’t trigger a reversal, Tesla may need to go lower. In that case, let’s see if we get a test of the March lows near $539 and a test of the 50-week moving average. If that doesn’t provide a bounce, the $500 breakout area may be in play.
Advanced Micro Devices (NASDAQ:AMD) continues to do well from a business standpoint, but unfortunately, nobody really cares about that right now. AMD is considered a growth stock, and growth stocks are getting slammed.
Shares are testing into — and are actually breaking below — range support near $74. I would love to see the stock hold this mark by the end of the week. If it doesn’t, it runs the risk of becoming resistance.
A notable move lower could put the 21-week moving average in play. On a rebound back over $74, look for AMD stock to test into the 10-week moving average, then challenge $80.
Above all of these marks puts $87 on the table.
Top Stock Trades for Tomorrow No. 3: Canada Goose (GOOS)
Canada Goose (NYSE:GOOS) is getting hit hard on Thursday, down almost 9% after reporting earnings. The stock has faded below a number of key moving averages and knifed right through its 21-week moving average on the day.
However, it’s finding buyers at the April lows. If this area ends up holding, I want to see GOOS stock reclaim its 21-week moving average. If it can do that, buyers can consider a long position against the post-earnings low.
Back above $40 and its 10-week and 50-day moving averages are some reasonable upside targets.
However, if Canada Goose fails to hold the April low and pushes lower, the gap-fill near $36 and the 200-day moving average may be in the cards. Stay nimble and remain open-minded here.
Top Trades for Tomorrow No. 4: Sonos (SONO)
Sonos (NASDAQ:SONO) is also on the move after earnings, up more than 7% on the day. However, it’s been a wild mover on Thursday.
There’s good and bad with this chart. For instance, the stock filled its gap at $32.88 earlier this week. However, it then broke below that low with Wednesday’s decline.
But then on Thursday shares went daily-up and undid a lot of damage. Then the stock faded from the highs, though.
Like I said, it’s a mixed bag here.
On the plus side, the stock is well off the lows. Unfortunately, though, Thursday’s fade came from a notable area. Specifically, the $35 area continues to act as resistance, while the 21-week moving average didn’t do SONO stock any favors. This area was also strong support earlier this year and it was the breakdown spot this week.
I want to see Sonos reclaim $35 before trusting on the long side. If it does, we have a nice low to measure against.
If the stock doesn’t reclaim $35 and breaks that low, it could put another gap-fill in play near $28, followed by the 200-day moving average.
On the date of publication, Bret Kenwell held a long position in AMD. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.