It’s been a choppy kind of week, but so far, bulls are maintaining altitude. With that said, let’s look at a few top stock trades for Friday.
Top Stock Trades for Tomorrow No. 1: Nvidia (NVDA)
Nvidia (NASDAQ:NVDA) has been red-hot since hitting its March low near $180. At this week’s high, shares were up about 100% from that level. With earnings on deck for Thursday after the close, investors will be tuning in to see how this stock does.
While not terribly overbought on an RSI basis, it’s hard to get too bullish on Nvidia after shares blew through $200, $250, $300 and even $350. I remarked that shares were a steal at or below $200, but that discount didn’t last long.
I would love a post earnings dip in this one. Ideally down to $280, which is now a proven level of significance. But even a dip down into the $300 to $310 area would make it more attractive.
On a post-earnings rally, it won’t take much for investors to turn their attention to $400.
Top Stock Trades for Tomorrow No. 2: Lululemon Athletica (LULU)
Add Lululemon Athletica (NASDAQ:LULU) to the new-high club. If shares continue higher, look to see the stock can run to $298.
It seems like a lofty target, but there LULU will find its 123.6% extension from the prior 2020 range. So far, the winning stocks have been the ones to maintain momentum in this stock-picker’s market.
If LULU can’t sustain momentum over the $265 area, see if we get a pull back. In that event, let’s see if shares find support in the $248 to $250 area. Below puts uptrend support and the 20-day moving average in play.
Top Stock Trades for Tomorrow No. 3: TJX Companies (TJX)
TJX Companies (NYSE:TJX) is moving nicely after reporting earnings. That’s despite a top- and bottom-line miss. While shares are gapping higher, they are having trouble sustaining current levels.
That’s as TJX stock runs into the 200-day moving average and fills its March gap. That puts investors in a tricky spot — a gap-up into resistance.
The 61.8% retracement comes into play near $52.60. Below that puts a decline down the $50 level in play, followed by the 20-day and 50-day moving averages.
Over the 200-day moving average and a push up to the 78.6% retracement near $58 is possible. Above puts $63 to $64 in play.
Top Stock Trades for Tomorrow No. 4: AstraZeneca (AZN)
AstraZeneca (NYSE:AZN) stock was on the move again Thursday, but it’s running out of steam. Shares are being rejected by the $57.50 area, as trend resistance keeps a lid on the stock price (blue line).
We just talked about how strong stocks seemingly get stronger in this type of market. AZN stock isn’t even overbought at the moment. For that reason, I certainly don’t want to fade this action. But with the stock up for nine straight days, it’s hard to be a buyer.
I’d love a shot at AZN stock on a dip into the $50 to $51 area. If that holds as support — and potentially times up with the rising 20-day moving average — then AZN may just be a buy.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret is long NVDA.