Stocks inched higher ahead of the Federal Reserve’s Minutes release and then bounced around a bit after that. So far we’ve seen a lot of wavering this week, but not a lot of follow-through. Let’s look at some top stock trades.
Top Stock Trades for Tomorrow No. 1: Advanced Micro Devices (AMD)
That question was almost answered a few days ago as shares surged through $88 into the mid-$90s. However, the stock lost traction despite slowly climbing toward $95. On Wednesday, AMD plopped lower, landing itself right near the 10-day moving average.
The stock needs to find its footing here and give bulls a bounce if it wants the technicals to remain intact. If it can do that, AMD may catch a nice rotation back into the $94 to $95 area. Above this week’s high could put the all-time high in play near $99.
On the downside, see that the $87 to $89 area acts as support.
Top Stock Trades for Tomorrow No. 2: The Trade Desk (TTD)
Right off the bat, shares went daily-up over Tuesday’s high. At one point, TTD actually went weekly-up early in the session. Despite the decline from today’s high, I still like the way this one is setting up.
There could be a bit more weakness into the $74 to $75 area, where it finds the 10-day moving average and 21-unit moving average on the above four-hour chart.
On a four hour-up rotation over $78.54 and a run into the $80 area is possible. A close below $74 leaves TTD as a “no touch” for the moment.
Top Stock Trades for Tomorrow No. 3: Home Depot (HD)
Home Depot (NYSE:HD) could go one of two ways in my mind. For now, it’s leaning toward “rotation” instead of “deeper decline,” but let’s go over the scenarios.
On Tuesday, Home Depot dipped to the 10-day and 50-day moving averages and promptly rallied off the lows. From here, I was looking for a potential daily-up rotation over $323.83, which we got on Wednesday.
That opens up the $327.50 to $330 area for a quick upside trade. Above $330 and it’s possible we see an extended run for the home improvement retailer.
On the downside, look for a move below this week’s low. That puts a deeper pullback in play, potentially down to the 21-day moving average, but also potentially down into the low $300 range.
Like I said, before today’s session, this one could have gone one of two ways. For now, it’s going with the rotation play, but we need to see it gain traction over $324. Otherwise, HD remains vulnerable.
Top Trades for Tomorrow No. 4: Caesars Entertainment (CZR)
Like TTD, the chart of Caesars Entertainment (NASDAQ:CZR) is a four-hour look. However, it also has a weekly measure here too.
You’ll notice that CZR was holding the 200-unit moving average on the four-hour chart, as well as the 21-week moving average. Both of these levels gave way on Wednesday, although the $94.40 level seems to be holding.
This setup looked a lot better 24 hours ago, but I’m not ready to give up on it yet. That’s as Vegas is booming and Wynn Resorts (NASDAQ:WYNN) is dipping down to the 200-day moving average. You might disagree, but CZR & Co. have my attention for a potential bounce.
Aggressive bulls are likely long against $94, while more conservative bulls will likely wait for some kind of rotation back above the key moving averages outlined above. In either scenario, I want to see a move back above $100.
Back above the 50-day moving average and the $106 area could be on the table. On the downside, a break of $94 could put $90 in play.
On the date of publication, Bret Kenwell held a long position in AMD and TTD. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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