4 Top Stock Trades for Friday: ZM, KR, BA, HTZ

Stock Market

After a monstrous upside day on Wednesday, the markets endured a tough day on the downside Thursday. Keep in mind, the non-farm payrolls report is due up before the open on Friday. That said, let’s look at a few top stock trades for tomorrow.

Top Stock Trades for Tomorrow No. 1: Zoom Video (ZM)

Zoom Video (NASDAQ:ZM) is already considered a coronavirus play, because it encourages a remote working environment. However, strong earnings help too.

Zoom is one of the few stocks rallying on the day. In fact, shares are hitting new all-time highs in Thursday’s session.

From here, bulls may feel like they’re playing with fire as shares are up so much. Meanwhile, others may feel like they need to stick with what’s working. So while it feels greedy to expect more upside, the trends favor ZM. Those who have been long can consider taking some off the table to lock in some gains.

Below the 20-day moving average, uptrend support (blue line) and the $105 mark, however, and the short-term trends will be broken.

Top Stock Trades for Tomorrow No. 2: Kroger (KR)

Alongside the move in Zoom is Kroger (NYSE:KR), as shares surge to multi-year highs amid intense market-wide volatility after Thursday’s earnings.

The stock is bursting over $31, which now becomes the must-hold level on the downside. This mark has played a notable role over the past several years, most recently as resistance in mid-2018.

Overall, should the bulls maintain momentum, it’s possible that KR stock runs to the $35 to $36 area.

Top Stock Trades for Tomorrow No. 3: Boeing (BA)

Earlier this week, I posted a weekly chart of Boeing (NYSE:BA) as the stock neared its 200-week moving average. On Thursday, shares plunged below this mark — knifing right through this expected support mark.

Surprisingly, though, this makes the trade rather simple. If BA can reclaim the 200-week moving average near $270, it puts this week’s open near $280 on the table. Above that, and $300 is possible.

If BA remains below the 200-week moving average, however, it keeps the $240 to $250 area in play.

Top Stock Trades for Tomorrow No. 4: Hertz (HTZ)

Hertz (NYSE:HTZ) shares are getting demolished on Thursday, as travel and travel-related stocks have nowhere to hide. Maybe it’s too cheap, maybe not. But the technicals are waving a red flag.

This stock has little to no demand on the long side, something that’s clear by its 50% decline in less than two weeks.

If the lows between $8.50 and $9 hold, bulls may find HTZ as a worthwhile bottom-fishing stock. On a move back over prior downtrend support (blue line), though, look for a snap back to $12. From there, HTZ will either need to correct lower, or potentially rally back toward the $15.50 mark. At that level, it will find its 10-week and 50-week moving averages.

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.

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