4 Top Stock Trades for Thursday: AMZN, DIA, SHOP, UTX

Stock Market

Stocks were pummeled again on Wednesday, hitting new lows and triggering yet another limit-down trading halt. That said, here’s a look at a few top stock trades for Thursday.

Top Stock Trades for Tomorrow No. 1: Amazon (AMZN)

Amazon (NASDAQ:AMZN) has been holding up surprisingly well, and perhaps that’s no surprise to investors as commerce shifts from physical stores to online purchases. Moreover, Amazon certainly outperformed its peers and broader market on Wednesday — ending the day up 1.2%.

Let’s see if that can continue. If the bulls continue to push this name higher, see if AMZN can reclaim prior uptrend support and the $1,825 level. Above that puts the 100-day and 200-day moving averages in play between $1,850 and $1,865.

Below Wednesday’s low at $1,745, though, and $1,700 is in play. Below that, and this month’s low near $1,625 is possible.

Top Stock Trades for Tomorrow No. 2: Dow Jones (DIA)

For a moment, the Dow Jones Industrial Average gave up all of its post-election gains. That’s nearly four years of gains wiped away in about four weeks, as the index is down about 35% from its highs.

That said, here is a weekly chart of the SPDR Dow Jones Industrial Average ETF (NYSEARCA:DIA), which highlights the damage. We’ve quickly seen a $20 drop from that notable $210 level. That marked the 2018 low and was an important breakout level in 2017.

Should bulls garner some upside momentum, this is the first upside target to keep an eye on. Above that, and the 200-week moving average is possible near $227. Below Wednesday’s low, however, and the 2016 breakout level near $172 is possible.

It sounds crazy, I know. But a lot of levels we’ve looked at over the past few weeks have seemed crazy too, and in some cases, they have already been exceeded. So use caution out there.

Top Stock Trades for Tomorrow No. 3: Shopify (SHOP)

Like Amazon, there may be some merit to buying Shopify (NYSE:SHOP). But because Shopify has a high valuation and is not a direct retailer, investors are pummeling the stock. Shares are down almost 50% from the highs, although compared to other growth stocks, that’s actually not too bad.

Down near $315, shares are kind of in no man’s land, although they are holding the prior session’s low relatively well.

I would be more interested initiating a position in SHOP stock down between $280 and $285. That was a big breakout level last year, before serving as support at various times after that.

On the upside, let’s see if Shopify stock can reclaim the 200-day moving average near $368. Over that, and $400-plus is possible.

Top Stock Trades for Tomorrow No. 4: United Technologies (UTX)

United Technologies (NYSE:UTX) had one of its worst days in two decades, ending the day down 14.5%. It comes amid continued turmoil in the aerospace industry. Before longs can get too excited, they need to see UTX hold $75.

Over $75 may put $85 in play, but the upside isn’t as important as the downside. $75 has been an important level over the years. If it fails to hold, Wednesday’s low is the first downside target.

Ending the day down nearly 15%, it would be ideal to see big support hold — at least temporarily — to give bulls some relief.

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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