After a couple of pullback days in the indices, the stock market bounced back a bit on Wednesday. That said, let’s look at a couple of top stock trades ideas going into Thursday.
The dip is unfortunate, as Netflix stock had recently gone monthly-up over the March high. On the weekly chart here, you can see how it was holding above the prior month’s high until this week.
Now selling off, shares are bouncing at the 50-week and 10-month moving averages. Bouncing from the $500 mark, that’s where bulls have stepped in all throughout 2021 so far.
Should Netflix lose these measures, it could open up $460 to $475 on the downside. This area has been support in the past and investors will look for that to be the case should shares fall that far.
On the upside, though, let’s start with seeing whether Netflix can reclaim the 10-week and 21-week moving averages.
Top Stock Trades for Tomorrow No. 2: Skillz (SKLZ)
After a painful decline, Skillz (NYSE:SKLZ) is on the mend, up more than 33% on Wednesday. The move is thrusting shares back above the 10-day moving average.
However, the more important zone to me is $14.50 to $14.70. I don’t want to see stock lose this level again. If it does, it puts the recent low in play at $12.40.
On the upside, however, let’s see if shares can push through the 10-month and 21-day moving averages. Above that puts $20 in play, followed by a possible squeeze up toward $25. Near the latter is the 100-day and 50-day moving averages.
The deeper buy zone sits about $4 lower, while the higher sell zone is about $4 higher. Sitting in the middle of that zone now, we need some larger movement to get a better opportunity.
On the upside, keep an eye on the April high at $59.46. Above that, and a move above $60 is possible, potentially to that supply zone near $62. A breakout over $62.50 could set Verizon on the path to more gains.
On the downside, though, be careful on a close below $57.50. If traders want to be long against that level, it’s a reasonable setup. Below that mark puts it below all of its major moving averages with the exception of its 200-day, and sets it up for a possible test of that aforementioned supply zone.
Top Trades for Tomorrow No. 4: Fisker (FSR)
Like Skillz, Fisker (NYSE:FSR) has suffered some painful losses lately, but is up nicely on the day. Shares finished up more than 17% on the day.
Also like Skillz, shares have rallied quite a bit from the recent low and have reclaimed the 10-day moving average. More importantly to me, shares reclaimed former support at $14.32.
As long as FSR stock continues to close above this mark on a daily basis, more upside may be possible. On a close below this measure, the low is in play at $12.23
Keep in mind, this stock, like Skillz, is quite volatile. While that enlarges the trading range, it also enlarges our risk profile. As a result, consider trading these types of names with smaller position sizes, or in many cases, avoided them altogether.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in any of the securities mentioned in this article.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.