It was a bumpy morning on Wednesday, with equities gapping up, moving lower and then rebounding back on the day. With that in mind, let’s look at a few top stock trades leading the way.
Top Stock Trades for Tomorrow No. 1: Moderna (MRNA)
Moderna (NASDAQ:MRNA) surged higher on the day, but was not able to hold onto all of it gains. Shares were up as much as 16% on Wednesday, but failed to close over the May high.
Earlier this week, shares burst over the $68 to $70 area, but Wednesday’s gap-up vaulted MRNA to new highs. At least, temporarily.
Now let’s see if we can get a close over $87, the May high, and take out the July high at $88.37. Above puts the 123.6% extension in play at $91.62.
If shares fill the gap down toward $75, though, it technically puts $68 to $70 in play. Below that puts the 50-day moving average and uptrend support (blue line) on the table.
Top Stock Trades for Tomorrow No. 2: AstraZeneca (AZN)
AstraZeneca (NYSE:AZN) also caught a pop on the day, ending the day up 7.5%.
Shares were wedging into a tighter and tighter range, which is now resolving to the upside. Unlike Moderna, AZN stock is clearing the May high at $57.44 and holding this mark.
If AstraZeneca closes over the May high and takes out Wednesday’s high currently at $58.84, it puts the 123.6% extension in play at $62.46.
Should AZN stock dip, however, I don’t want to see it lose this session’s low. Otherwise, it could fill the gap and retest its 20-day and 50-day moving averages, as well as prior wedge resistance. Although, that very well could be a buying opportunity for nimble bulls.
Top Trades for Tomorrow No. 3: American Airlines (AAL)
American Airlines (NASDAQ:AAL) has been very volatile over the last few months. Just look at the way shares made new lows in May — unlike almost every other stock at that time — before surging almost 200% in a matter of weeks.
Now down considerably from those highs in June, shares are back on the move on Wednesday. AAL stock climbed more than 16% on the day, as it rallies into a cluster of moving averages.
If it can clear all of these marks — with the 20-day, 50-day and 200-day moving averages between $12.69 and $13.25 — it puts two gap-fills on the table. Those come into play around $15 and $16, respectively, provided it can clear the tw0-week high at $14.29. Above that may put the 50% retracement on the table, near $19.50, but let’s not get ahead of ourselves.
Should these moving averages act as resistance, see if American Air fills the gap down near $11.50. Below $11 is a bad sign for bulls.
Top Stock Trades for Tomorrow No. 4: Beyond Meat (BYND)
Beyond Meat (NASDAQ:BYND) was moving nicely on the day. However, it still has to prove itself to the bulls.
While $125 is acting as support — after previously serving as resistance in January and February –Fwedn BYND still faces its 20-day and 50-day moving averages. Further, it has downtrend resistance (blue line) just overhead.
A move over $143.50 clears all of these marks, and puts the recent highs near $160 to $165 on the table. Below $125 could create issues for the bulls in the short term.
Top Trades for Tomorrow No. 5: UnitedHeath (UNH)
UnitedHealth Group (NYSE:UNH) looked like it was ready to run after it delivered an earnings beat before the open. However, shares were rejected from the $310 level.
On the plus side, $300 was prior resistance and seems to be holding as support, as shares look very ready to burst over $310 and run. If they do, it could put the 123.6% extension in play all the way up at $333.
On the downside, there is ample support between $290 and $300, including the 20-day and 50-day moving averages, as well as uptrend support (blue line). Some investors may prefer to wait and see if they can get a dip-buy in the $290s as opposed to buying now and hoping that $300 holds.
Below all of these support zones could put the $275 mark and the 200-day moving average on the table.
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.