4 Top Stock Trades for Thursday: CPB, ZS, WDAY, SHOP

Stock Market

All it took was a more relaxed tone on trade to send U.S. equities racing back higher. Here’s a look at a few top stock trades as we enter the last few days of the week.

Top Stock Trades for Tomorrow No. 1: Campbell Soup (CPB)

Campbell Soup (NYSE:CPB) shares hit new 52-week highs in Wednesday’s session, despite missing on revenue expectations.

As you can see in the chart above, CPB has made a routine of putting in higher lows and trending from the lower left to the upper right. Over the last few months, though, $48 has been a tough nut to crack.

Let’s give CPB stock a day or two and see if it can push above this level. If it can close above $48, it puts $50-plus on the table. Remember, for being a “boring” stock, this name has moved quite well this year.

Below $48, and the 20-day and 50-day moving averages are on the table. Below uptrend support (blue line) and CPB may need more time to consolidate.

Top Stock Trades for Tomorrow No. 2: Zscaler (ZS)

Top Stock Trades for Tomorrow No. 2: Zscaler (ZS)

Zscaler (NASDAQ:ZS) reported a top- and bottom-line earnings beat, and while its full-year guidance was solid, management’s Q2 outlook was a bit underwhelming. That hit the stock on Wednesday.

Just as CPB has been struggled with $48, ZS stock has been struggling with $53. Unlike Campbell Soup though, Zscaler isn’t trading near its 52-week highs.

In any regard, it’s holding up over the 50-day moving average and uptrend support (blue line). It’s a risky long position to take, but so long as ZS is over $46, bulls can stick with it.

Over $53 and the declining 100-day moving average is a possible upside target. Below $46, and $40 to $42.50 is possible.

Top Stock Trades for Tomorrow No. 3: Workday (WDAY)

Top Stock Trades for Tomorrow No. 3: Workday (WDAY)

A few days ago, Workday (NASDAQ:WDAY) was rejected from the 100-day moving average at $180. On Tuesday, the stock rallied hard off the 50-day moving average, only to gap below it on Wednesday despite solid earnings.

In doing so, WDAY also lost short-term uptrend support (blue line).

This one looks lost for direction at the moment. Bulls who want to go long may want to wait for the stock to reclaim the 50-day moving average and take out Wednesday’s high.

Moving above those marks puts the 100-day moving average back on the table. Below Wednesday’s low and sub-$155 is possible.

Top Stock Trades for Tomorrow No. 4: Shopify (SHOP)

Top Stock Trades for Tomorrow No. 4: Shopify (SHOP)

Wow, has Shopify (NASDAQ:SHOP) come to life or what? On Monday this name looked to be breaking down. Two days later and SHOP is up $65, or 20%, from this week’s low.

Crazy move aside, how do we trade this thing?

If the momentum keeps up, there’s not much preventing a move to $400. Bulls would love to see SHOP hold $370 as support, but if the market comes under pressure, we could easily see some air come out of the stock price.

Let’s see if the 78.6% retracement plays a role on a potential pullback. On a further decline, keep an eye on the 100-day moving average. Zooming out to a longer time horizon, notice how the 50-day moving average went from support to resistance, and back to support again after the last few weeks of action (blue circle). This may be a solid buy-the-dip spot down the road.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities.

Articles You May Like

Introducing StockTracker Master Class Volume 1