It was a quiet day in the stock market, despite the S&P 500 rallying more than 1%. Investors are still waiting for tech to regain its footing and find some momentum. Let’s look at a few top stock trades ahead of next week.
Top Stock Trades for Tomorrow No. 1: Nio (NIO)
Nio (NASDAQ:NIO) has been one of the market’s best performers. Shares have scorched higher over the past year, with a 52-week range spanning from $1.66 to $54.20. The latter was hit in Friday’s session.
However, a negative piece from Citron Research hit Nio hard after its latest run, with shares down 12% on the day. We now have a bearish engulfing candle on the daily chart. That’s where the range of the current candle literally engulfs the prior day’s range.
In any regard, let’s see if the $37.50 area hold as support.
Below that puts uptrend support and the 20-day moving average in play. If that fails, the $30 level could be on the table, along with the 50-day moving average.
On the upside, I want to see shares reclaim $45, opening the door to $50-plus.
Walmart (WMT)
Walmart (NYSE:WMT) trades in such an interesting way. It’s obvious that the stock is in demand but the rallies can be slow and monotonous.
With Friday’s move, shares are pushing through channel resistance, putting the September all-time high in play near $151.33. Above that and the 161.8% extension could be in play just below $160.
On the downside, I want to continue seeing the 50-day moving average and channel support buoy Walmart.
If the stock breaks these levels, the September low is potentially in play near $135, followed by a possible test of the 200-day moving average.
With everything that Walmart is doing and ahead of the holidays, this one may remain in bulls’ control. Watch $151.33.
Disney (DIS)
Disney (NYSE:DIS) is rallying on earnings, but not necessarily in convincing fashion. Still, the stock is holding most of this week’s gains, which were fueled by hopes over a vaccine for the novel coronavirus.
As long as shares can hold up over the Q3 highs near $135 to $136 and the backside of prior downtrend resistance (blue line), it’s hard to hate the House of Mouse.
Below opens up the stock to a gap-fill near $127.50 and/or a test of the 50-day moving average, whichever comes first.
On the upside, look for a rotation over the November high, at $147.68. Above puts the December 2019 high in play at $152.50. That’s also Disney’s all-time high.
JD.com (JD)
JD.com (NASDAQ:JD) is another really interesting stock. On the one hand, Alibaba (NYSE:BABA) continues to get pummeled. On the other hand, JD.com continues to trade quite well.
With earnings on Monday, we’ll get a better taste of what this stock can do.
If shares pull back, it would be preferable if they could stay above $85. If not, holding $80 becomes key. The 50-day moving average has been support for months now and losing this level would disrupt the trend in the short to intermediate term.
It would immediately put the double-bottom November low in play near $77.50. If that fails, the September low near $72.50 and 100-day moving average are possible downside targets.
On the upside, let’s see if shares can take out the high near $92.50 and make their way toward $100.
On the date of publication, Bret Kenwell held a long position in DIS.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.