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Despite the holiday-shortened trading week, the stock market has been pretty volatile to end the month of May. U.S. stocks are under pressure Thursday amid renewed concerns over a global trade war. With that in mind, there were some winners and some losers making our top stock trades list.
Top Stock Trades for Tomorrow #1: Box (BOX)
Shares of Box Inc (NYSE: BOX ) tanked about 9% despite beating on earnings per share and revenue estimates and providing guidance that was better than analysts' estimates.
The pullback shouldn't come as a surprise even with good numbers, as the stocks had a big rally from $18 in March to $28 this month.
I would have really loved to see Box retest the $24 level and show a violent rebound from there. Instead, it only got down to $24.50 before bouncing. At this point, it's not clear if Thursday's low is the short-term bottom or if it will ultimately retest $24. I happen to believe that BOX's strong fundamentals and investors' clear appetite for the stock will continue to drive it higher in 2018.
In that respect, traders willing to take a long-term view on it may find it best to nibble a position here in the low-$25s and add to it should it retest $24 and hold.
Top Stock Trades for Tomorrow #2: Facebook (FB)
What an impressive rebound we've seen in Facebook, Inc. (NASDAQ: FB ). After brutally dropping down to the lower $150s - where InvestorPlace regulars read they should buy FB - it's quickly rebounded north of $190.
Previously, I thought there would be enough of a hangover to keep Facebook from making new highs anytime soon. Alas, that was wrong.
Up near $192 and there's not a lot of wiggle room for traders at the moment. Bulls can target the previous highs near $195 and if it continues higher look for a run to $200. If momentum wanes and FB pulls back, look for support in the mid-$180s. If it holds, FB stock is a buy.
Top Stock Trades for Tomorrow #3: Micron (MU)
Micron Technology, Inc. (NASDAQ: MU ) is one of the most popular trading vehicles, in part because it makes such big moves. Thursday's development? A double top.
Honestly a pullback all the way down to trend-line support near $48 isn't off the table, as MU made that exact move earlier this year. If bulls really are in control though, support between $54 and $56 will hold.
On a pullback to these levels, bulls can dip their toes in the water. If it holds, it should retest $60 and possibly its prior highs. For the brave bears, make sure to use a stop-loss just above that double-top. No need to stay short if MU wants to run to $70. Not at this valuation .
Top Stock Trades for Tomorrow #4: Alphabet (GOOGL)
For its part, Alphabet Inc (NASDAQ: GOOGL ) hasn't been trading that well compared to its FANG counterparts. Thursday's near-3% rally is trying to change that though, after GOOGL teamed up with Fiat Chrysler Automobiles (NYSE: FCAU ) for some 65,000 vehicles.
The rally vaulted GOOGL over $1,095 resistance, as well as its 100-day moving average. It also popped out of a small descending channel. Should this move hold, bulls can target the most recent high at $1,120, then $1,150 where downward resistance could come into play.
Top Stock Trades for Tomorrow #5: General Motors (GM)
It's been a tech-filled write-up so far, so let's throw it back with a good-ole American classic: General Motors Company (NYSE: GM ).
GM shares skyrocketed Thursday, up 13% following a $2.25 billion investment from Softbank Corp/ADR (OTCMKTS: SFTBY ) in its GM Cruise business.
The rally is huge for GM and puts it on a collision course to retest its highs near $45. The momentum-measuring MACD and relative strength index (blue circles) show that there's more room to run too. With a low valuation and a plan for growth , GM could still have upside. A 3.6% dividend yield doesn't hurt.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell . As of this writing, Bret Kenwell was long GOOGL and BOX.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
