4 top stock trades for Thursday: PTON, PG, BB, KMX
After a strong rally on Tuesday, stocks tiptoed higher on Wednesday. So with just one trading day to go this week, let's look at a few top stock trades for Thursday. ![]()
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Check out this super interesting chart of $Peloton Interactive (PTON.US)$. On the top, we have the daily chart, and on the bottom, we have the weekly. The weekly chart shows Peloton working on its seventh-weekly decline in the last eight weeks. However, it also shows that shares are trading near a key level from 2020, near $37. When we look up at the daily chart, there's a massive gap-down from the $85.75 level, which kicked off this painful downtrend. Amid that downtrend, the 21-day moving average has been stiff resistance. ![]()
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However, notice the bullish divergence on the RSI reading for the daily chart. Combined with the $37 level, things are potentially looking interesting here. ![]()
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I would love some kind of break of $37 or gap below this level and then a reclaim of $37. Sort of like the trade with $Canopy Growth (CGC.US)$, which worked out incredibly well.
Like Canopy Growth, $Procter & Gamble (PG.US)$ was one of my go-to trades this week. While Canopy was a slick reversal setup, P&G was a buy-the-dip opportunity.
The first opportunity came on a dip to the 8- and 10-day moving averages on Monday morning. That trade led to a nice rally on the session and now puts more potential upside in play. Specifically, I'm looking at $160-plus to put the highs in play near $161.75. Above that, and the 161.8% extension is on the table near $162.50.
$BlackBerry (BB.US)$ could have really used a strong post-earnings move on Wednesday. Instead, it's a dud. Shares are rallying off the lows, which is a positive, but continue to struggle with the short-term moving averages and the $9.50 zone.
On the plus side, a push through $9.60 could quickly put $10 in play, followed by the 50-day and 200-day moving averages. Above that could open the door to $12, but let's not get too ahead of ourselves quite yet.
On the downside, however, a break of this month's low could put $8 back in play. ![]()
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$CarMax (KMX.US)$ stock opened higher yesterday, but finished the day down about 7%. It's what I call a bearish engulfing candle, as the stock completely "engulfs" the prior day's range with a move lower.
Shares are slicing right through the 200-day moving average in the process. For now, it's finding some support at the 10-month moving average, but I wouldn't go all-in on it holding.
I'd rather see a larger dip down to the $122 area or a rebound back up through the 200-day. If it's the latter, let's see if CarMax stock can rally back up to the 10-day moving average, then the $140 level. ![]()
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Below $120, and $113 may be next.
Source: InvestorPlace
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