Shares slipped lower on Thursday, as equities failed to climb on the day. With that in mind, let’s look at a few top stock trades as earnings season picks up steam.
Top Stock Trades for Tomorrow No. 1: American Airlines (AAL)
American Airlines (NASDAQ:AAL) has become a favorite among traders looking to play the industry. While the overall market is under pressure, AAL is churning out a gain on Thursday — up 3.6% after earnings.
While being up on a down day in the market is good, the bullish notes end there. Shares remain below the 20-day and 50-day moving averages, while they continue to cling to $11 support.
Over prior downtrend resistance (blue line) is a positive. However, bulls need to see a rotation over some of these key marks in order to gather some sustainable momentum.
Those long against $11 need to see shares reclaim the 20-day and 50-day moving averages, and ideally climb to the 23.6% retracement near $13.50. Above $13.50, and AAL can gain steam, potentially running to the 38.2% retracement near $17.
Below $11 potentially puts $10 or lower in play.
Top Stock Trades for Tomorrow No. 2: Apple (AAPL)
The action in Apple (NASDAQ:AAPL) was not encouraging on Thursday. What has been a market leader is now showing signs of waning momentum.
Shares broke below the 10-day and 20-day moving averages on the day, as well as uptrend support (blue line). For now, the 138.2% extension at $370 brought in buyers, while the 161.8% extension continues to act as resistance near $400.
If we see a further breakdown — either ahead of or after earnings — I want to see the $350 level act as support. There Apple finds the 123.6% extension and the 50-day moving average. For such a strong stock, this level should act as support, barring some atrocious news.
On the upside, Apple needs to reclaim its 20-day moving average, then put $400 back on the table.
Top Stock Trades for Tomorrow No. 3: Silver ETF (SLV)
Silver has been on fire, with the iShares Silver ETF (NYSEARCA:SLV) erupting 17% so far this week.
Shares broke out over $17.50, which was resistance in 2019 and 2020, then broke out over the 2016 highs near $19.50. From there, the SLV blasted through the 138.2% extension near $20.30.
Ideally, the SLV will now hold up over $20 and the prior 2016 highs. On the upside, see if shares can rotate over this week highs at $21.51, putting the 161.8% extension in play near $21.91.
Top Trades for Tomorrow No. 4: Bitcoin
Bitcoin has started to look more interesting after a quiet few weeks. For something as volatile as bitcoin, the asset has traded in a relative tight $1,000 range for the last few months.
Shares broke out over downtrend resistance (blue line), reclaiming the 20-day and 50-day moving averages in the process. Let’s see if bitcoin can continue to run, putting $10,000 in play.
Above $10,000 and stiff resistance between $10,350 and $10,500 is possible, before an even larger breakout could begin. On the downside, a close below the 50-day moving average puts $9,000 back on the table, followed by the 200-day moving average.
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.