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4 Top Stock Trades for Friday: ROKU, SQ, WYNN, BIDU

As optimism rises for a phase-one trade pact between the U.S. and China, so too does the stock market. The S&P 500, Dow and Nasdaq all notched another new all-time high on Thursday. Let’s look at a few top stock trades going forward.

Top Stock Trades for Tomorrow No. 1: Roku (ROKU)

Shares of Roku (NASDAQ:) were in the spotlight Thursday, after the company fell more than 17% near the open. That decline comes despite the company reporting better-than-expected quarterly figures.

ROKU stock is trying to make a stand, though. Shares are reclaiming the 100-day moving average, the 38.2% retracement and the August gap-up level near $119.

The setup here is simple — just take it one level at a time.

If Roku continues higher, see how it handles the 50-day moving average. Above it and the 23.6% retracement near $141 is in play. Should shares lose the 100-day moving average and 38.2% retracement, its next stop may be $110, followed by the 50% retracement near $101 and the 200-day moving average at $95.50.

Top Stock Trades for Tomorrow No. 2: Square (SQ)

Square (NYSE:) didn’t close at its highs, but it did jump on earnings. However, the stock is running into a roadblock.

Shares continue to put in a series of higher lows, forming a nice uptrend (blue line). It’s also holding up over its 50-day moving average and 78.6% retracement, right near that uptrend line.

Over $64 is constructive, but over $66.50 is certainly more bullish. That would put the stock over a significant level, as well as the 100-day moving average. It opens the door to the 200-day moving average up over $69.

Bulls might wait for a move over $66.50, or for a pullback into $61 that holds as support. Below $60 is a no-go.

Top Stock Trades for Tomorrow No. 3: Wynn (WYNN)

Wynn Resorts (NASDAQ:) initially recoiled on earnings, but is holding up over its 61.8% retracement near $125.

The trade? Below Thursday’s low, and the 200-day moving average is in play. Above downtrend resistance (blue line), Wynn shares could really take off. The 78.6% retracement near $135.70 would be the next upside target.

Keep it simple. Overly complicated setups or trades with a lot of “technical conflict” can be difficult and choppy. We like clean moves that come off simple setups. Wynn is a prime example. Remember, if this, then that.

Top Stock Trades for Tomorrow No. 4: Baidu (BIDU)

Shares of Baidu (NASDAQ:) are rallying to $120 on Thursday. Like Wynn, traders would do best to keep it simple.

If it can stay over $120, the June high of $121.80 is on the table. Above that gets Baidu stock up toward a potential gap fill (blue box) and the 200-day moving average over $131.

Falling below $120 puts Thursday’s low near $115 on the table. Should shares trade below that the latter, a fill down toward $108 is possible, while the 50-day and 100-day moving averages are just below that, between $105 and $107.50.

Bret Kenwell is the manager and author of and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long ROKU. 

The post appeared first on InvestorPlace.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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