Options
NIO

4 Top Stock Trades for Thursday: NIO, UAL, BIDU, MS

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

After a strong run, stocks used Wednesday as another opportunity to take a breather. Indices digested recent gains in a choppy session ahead of this week’s monthly expiration. With all of that in mind, let’s look at a few top stock trades for Thursday. 

Top Stock Trades for Tomorrow No. 1: Nio (NIO)

top stock trades for NIO
Click to Enlarge
StockCharts.com

Nio (NYSE:NIO) was a total beast on Wednesday, rallying more than 22% on the day — and I am really kicking myself with this one

I was flipping through some charts this morning and came across Nio. It was beautiful. Trending higher, consolidating its recent run to new highs and it had a nice high-and-tight look. 

The daily ranges were getting smaller, the lows were getting higher and the 10-day moving average was acting as support. Then I saw the pre-market action, up 10%. Little did I know up 20% was around the corner.

In any regard, with a close over $26.41, see if Nio can press to $30. Above technically puts the 261.8% extension in play. I want to see the prior high — $22.59 — act as support. 

Top Stock Trades for Tomorrow No. 2: United Airlines (UAL)

top stock trades for UAL
Click to Enlarge
StockCharts.com

United Airlines (NASDAQ:UAL) is set to report earnings after the close on Wednesday. Shares continue to struggle with the 10-day and 50-day moving averages. 

Last month, UAL stock lost uptrend support (blue line) before ultimately finding support near $32. Since bouncing, that prior uptrend mark is now acting as resistance. If the stock can rally on earnings, I want to see it clear this mark. 

Even more, though, I would like to see UAL close above $40. That mark has been notable resistance over the last few months. Above that opens the door to the 200-day moving average, followed by a potential test of the June highs near $48. 

On the downside, a break of this week’s low at $35.17 and the 200-period moving average on the four-hour chart near $35 would be a bad look for bulls. It puts $32 back in play, along with the September low at $31.22. 

Top Stock Trades for Tomorrow No. 3: Baidu (BIDU)

top stock trades for BIDU
Click to Enlarge
StockCharts.com

Baidu (NASDAQ:BIDU) erupted higher on the day, gaining more than 7% on Wednesday. The move sent shares to its highest point since February. 

With that said, Baidu is finding some resistance, too. Shares are being rejected from the $139 level as we speak. If it can hold up around the July highs and stay above the 78.6% retracement near $133 though, I think bulls can stay in control. 

Above $139 opens the door to the 2020 high, up at $147.38.

Below $133, and prior resistance near $128 is on the table. Should shares go through a very tough period, look to see that the 200-day moving average continues to act as support. 

Top Stock Trades for Tomorrow No. 4: Morgan Stanley (MS)

top stock trades for MS
Click to Enlarge
StockCharts.com

Goldman Sachs (NYSE:GS) reported an earnings smasher on Wednesday morning. Given the line of business, I would expect Morgan Stanley (NYSE:MS) to do the same when it reports on Thursday morning. 

However, GS stock didn’t get much of a rise, and as a result, Morgan Stanley might not either. 

Shares continue to hold up over the 78.6% retracement and the 50-day moving average. On a bearish reaction, see that the 10-day moving average acts as support. Below is a turn off and it will put uptrend support (blue line) in play, followed by the 200-day moving average and the September low near $46. 

On the upside, see if shares can rally to and clear $53 resistance. Above puts the September high in play near $54.40, followed by a possible stab at the 2020 highs in the $55 to $56 area. 

On the date of publication, Bret Kenwell held a long position in GS.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.

More From InvestorPlace

The post 4 Top Stock Trades for Thursday: NIO, UAL, BIDU, MS 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.

In This Story

NIO UAL BIDU GS MS

Latest Options Videos

    The Growth of Options Trading From the Exchange Perspective

    Nasdaq Senior Index Options Analyst Seamus Scaring discusses the growth of options trading from the exchange perspective.

    6 days ago

    InvestorPlace

    InvestorPlace is one of America’s largest, longest-standing independent financial research firms. Started over 40 years ago by a business visionary named Tom Phillips, we publish detailed research and recommendations for self-directed investors, financial advisors and money managers.

    Learn More