The bulls showed back up to fight on Thursday after stocks initially rolled over in the morning session. With that in mind, let’s look at a few top stock trades as we finish out the week.
Top Stock Trades for Tomorrow No. 1: Ford (F)
Ford (NYSE:F) was one of the best-performing auto stocks for a bit of time. Now, it’s fallen by the wayside. And this week has not been pretty for Ford, either.
After holding the 50-week moving average through this year’s correction thus far, it failed this week. The stock is now down into the 50% retracement of the full range — from the Covid-19 low to the recent high.
If Ford bounces, look to see if it can climb back to the 50-week moving average. Keep in mind this measure may be resistance. If shares continue lower, the 61.8% retracement and $12.50 support level could be on deck.
Top Stock Trades for Tomorrow No. 2: Pfizer (PFE)
Pfizer (NYSE:PFE) has been trading well over the past few days, as longs can attest. With the rally, it was able to reclaim its 10-week and 21-week moving averages.
Now it’s sitting in an interesting place, though. Pfizer is sitting at last month’s high of $55.30 with the 61.8% retracement less than 20 cents higher.
If we can get a rotation to the upside — and this is a big “if” — then more upside could be in play. Specifically, I’d be looking at $58.50 as my next upside target, then $61 to $62.
If the stock pulls back, that’s OK. But I want to see it hold $53.50 in that case.
Top Stock Trades for Tomorrow No. 3: Walmart (WMT)
Walmart (NYSE:WMT) has been an absolute beast lately. Now up in 10 out of its past 11 sessions, it’s clearly in breakout mode. So, what would I like from here?
I would love to see Walmart stock dip back into the $152s and time up with a test of the 10-day moving average. That would give dip-buyers a reasonable risk/reward to get long.
If that sets up and holds as support, this week’s high becomes the first upside target near $157.50. Above that could open the door to the $165 zone.
However, if Walmart loses $150, bulls have to look for a possible test down to the 21-day moving average.
Top Trades for Tomorrow No. 4: Raytheon (RTX)
Defense stocks have been trading well lately. And while Raytheon (NYSE:RTX) is lagging some of its peers in terms of rotation, it’s still looking OK.
With a nice little falling wedge pattern in play, shares are breaking to the upside and reclaiming the 10-day and 21-day moving averages in the process.
I would love to see a daily-up rotation tomorrow for a potential long trigger, particularly if it can clear and hold above the 61.8% retracement.
That would put $102.50 to $103 in play, then potentially $106.
Below the 21-day and this one loses my interest.
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