Despite another disappointing jobless claims report, stocks found a way to rally on Thursday. That said, here’s a look at a few top stock trades for Friday.
Top Stock Trades for Tomorrow No. 1: Square (SQ)
At first, Square (NYSE:SQ) dipped on earnings. However, bulls have reversed their fortunes, with shares ending the day on Thursday up nearly 10%.
With the move, Square is likely to put in its fifth-straight week of gains. It’s also reclaiming its 20-week and 50-week moving averages with the rally, and the next stop may very well be the $82.50 area.
There it finds multi-year resistance and a level that has been relevant for nearly two years. Above that will put the $100 level on investors’ radar, which was approximately the high from 2018.
On the downside, though, it would be encouraging to see the 20-week and 50-week moving averages act as support.
Top Stock Trades for Tomorrow No. 2: Spirit Airlines (SAVE)
Spirit Airlines (NYSE:SAVE) is not having a favorable post-earnings reaction, ending Thursday down 9%. However, there is a bright side here, which is that shares are clinging to this $10 area.
Above it now, bulls want to see shares hold the $10 area as support. That’s not much of a silver lining, but it beats the alternative. Should Spirit fail to do this, it keeps a test of the lows near $7.50 in play.
Personally, there’s nothing here that looks attractive on the long side yet — it’s too early. Investors can either way for a dip down to lower prices or wait for SAVE to rotate over Thursday’s high. Above puts a gap-fill up toward $11.50 in play.
Ultimately, airlines are not the easiest group to trade at the moment.
Top Stock Trades for Tomorrow No. 3: Lyft (LYFT)
Lyft (NASDAQ:LYFT) shares are surging on Thursday, climbing more than 20% on better-than-expected earnings. That’s even as shares pull back significantly off the session high.
For now, the $32.50 to $35 area is acting as resistance, which comes as little surprise to those who follow the charts. However, that’s good for traders, because it lays out a clear roadmap.
If Lyft can clear $32.50, it puts $35 in play. Above $35 puts $40 in play, along with the 200-day moving average.
If it can’t push through $32.50, however, then the 20-day and 50-day moving averages are on the table near $29. Below puts uptrend support (blue line) in play.
Top Stock Trades for Tomorrow No. 4: Uber (UBER)
Lyft’s report gave Uber (NYSE:UBER) a bounce on the day, with shares rising more than 11%. However, it’s getting a fierce rejection from the 200-day moving average.
On a bullish reaction, let’s see if Uber can reclaim the 200-day moving average and rally up to $34. Over $34 puts the $36 to $38 zone in play, followed by a gap-fill up to $40.
On the downside, though, I really want to see the $27 to $28 area hold. There Uber finds prior multi-month resistance, the 20-day and 50-day moving averages and uptrend support (blue line).
A break below puts $24 on the table.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, he did not hold a position in any of the aforementioned securities.