Despite more than 20 million job losses in April, equities continued to power higher on Friday. Let’s look at a few top stock trades for next week.
Top Stock Trades for Tomorrow #1: Invesco QQQ ETF
The Invesco QQQ ETF (NASDAQ:QQQ) hit its highest level since February. The exchange-traded fund has been resilient, rallying more than 36% from the March lows. The ETF is also up more than 5% for the year.
Not many would have expected this action, but now things get a bit trickier.
It’s starting to fill into its massive gap-down from February. If it can fill it, it will take the QQQ up toward $230. Above that technically puts the all-time highs in play. On a move below the 78.6% retracement and $220 level puts a possible pullback in play.
In that scenario, I’m looking at the 61.8% retracement near $209 and the 100-day moving average near $210. That zone is in the heart of the ETF’s recent consolidation zone.
Below it puts the $200 mark in play.
Top Stock Trades for Tomorrow #2: Beyond Meat
Beyond Meat (NASDAQ:BYND) continues its excellent post-earnings rally. On Thursday, shares consolidated Wednesday’s big rally before pushing to new recent highs on Friday.
In doing so, Beyond Meat actually hit new 2020 highs. However, it’s struggling with the $130 resistance level. If it can gain more momentum, $160 is not out of the question, even though it seems unrealistic from here.
If $130 succeeds as resistance, let’s see if the two-day low can bolster BYND. Below puts the 200-day moving average in play. I mostly want to see if $130 can flip from resistance to support, putting bulls back in the driver’s seat.
Top Stock Trades for Tomorrow #3: SmileDirectClub
SmileDirectClub (NASDAQ:SDC) has struggled immensely since going public. On the chart above, you can see the IPO price, a level SDC stock has not been able to reclaim since going public.
However, shares have been trading better lately, with earnings due up next week.
It’s trying to push through a very significant level right now near $8. Above that and the 100-day moving average, and SDC can begin filling into February’s massive gap-down. Should it fill the entire gap, it will send the stock up toward $11.
If $8 holds and SmileDirectClub trades back below $6.50, let’s see if the 50-day moving average can buoy the share price. Below that puts $4 support back in play.
Top Stock Trades for Tomorrow #4: Turtle Beach
Turtle Beach (NASDAQ:HEAR) has made a huge move off the recent lows near $4.
Shares have still more than doubled, even after pulling back from almost $12 earlier this week. For now though, HEAR stock is holding up over the 200-week and 50-week moving averages, as well as prior downtrend resistance (blue line).
As volatile as the stock has been, I really like the way it’s holding up above such a key area. Let’s see if shares can retest resistance near $12. A breakout over this mark could put $16 and $18 on the table.
A move below $8 ruins the setup for longs and puts the 20-week moving average in play.
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.