It’s been one other uneven day because the S&P 500 hovers close to its new highs however lacks dedication in both path. Let’s have a look at a number of high stock trades for Thursday.
Prime Stock Trades for Tomorrow No. 1: Target (TGT)
Target (NYSE:TGT) is popping to new all-time highs after better-than-expected earnings.
Though shares are clearing final month’s resistance close to $167 and the two-times vary extension, Target can also be operating into channel resistance close to $172 (blue line).
If the stock can proceed to push increased — both with or with out a breakout over channel resistance — look to see if it could possibly climb to the 261.8% extension close to $191. Above that, and $200 is in play.
On the draw back, although, I need to see the $165 to $167 space maintain as assist. Beneath places the 50-day transferring common again in play.
Prime Stock Trades for Tomorrow No. 2: Nikola (NKLA)
Nikola (NASDAQ:NKLA) stock is catching a wave of shopping for on Wednesday, up 15.4% to finish the day. Quietly, this stock has been on hearth.
Shares are up 4 days in a row and in 5 of the final six classes. From final week’s low to Wednesday’s excessive, Nikola is up 41%. With final week’s transfer, shares broke out over downtrend resistance (blue line). And with Wednesday’s transfer, NKLA stock is reclaiming the 50-day transferring common.
So, now what? I wish to see NKLA stock keep above the 50-day transferring common going ahead. Beneath opens it again as much as $20 or decrease.
On the upside, Nikola might see a troublesome take a look at close to $28.50. Whereas that represents a bit extra upside from Wednesday’s excessive, it’ll discover the 200-day transferring common close to this mark, in addition to one other layer of downtrend resistance.
Above these marks places the $33 gap-fill in play, in addition to the 100-day transferring common.
Tesla (NASDAQ:(TSLA)) caught a pleasant rally on Tuesday, and is constant the transfer increased on Wednesday. Yesterday shares burst increased on information that Tesla will probably be included within the S&P 500.
Nevertheless, shares couldn’t escape over $460 resistance. Effectively, at the least till at present.
Bursting above this stage now, look to see if Tesla stock could make one other run at $500 and its all-time excessive close to $502. Above opens the door to the 361.8% and four-times vary extensions close to $518 and $565, respectively.
On the draw back, nonetheless, I need to see the $450 to $460 space act as assist now — permitting bulls to take care of management.
Prime Trades for Tomorrow No. 4: Virgin Galactic (SPCE)
Virgin Galactic (NYSE:SPCE) is making an attempt to maneuver from spec play to funding play — and the stock price reveals it.
SPCE stock continues to place in a collection of upper lows from the September dip, however it additionally continues to place in decrease highs. This price motion is forming a wedge look on the chart (blue traces).
Admittedly, I’d have most popular to see the stock holds its trifecta of transferring averages — the 50-day, 100-day and 200-day — in late October and early November. Though that didn’t occur, shares are nonetheless buying and selling properly on the lengthy facet.
With Wednesday’s rally, SPCE is climbing proper into wedge resistance. If we are able to get a push increased from right here, it’s doable the stock rotates over final month’s excessive at $24.37. Not solely would that get us a breakout over wedge resistance, but additionally a monthly-up rotation.
That may put final quarter’s excessive in play at $27.55 from July. Above that, and — yep, you guessed it — we get a quarterly-up rotation. Nevertheless, all this begins with a breakout over wedge resistance, which is what traders need to see now.
On the draw back, although, I once more wish to see the stock’s key transferring averages act as assist. Beneath places wedge assist in play, however the stock doesn’t actually begin to break down except it loses the November and October lows.
On the date of publication, Bret Kenwell didn’t have (both straight or not directly) any positions in any of the securities talked about on this article.
Bret Kenwell is the supervisor and creator of Future Blue Chips and is on Twitter @BretKenwell.