While stocks raced higher in the opening few minutes of trading, equities faded hard in the afternoon. With that in mind, let’s look at a few top stock trades for Friday.
Top Stock Trades for Tomorrow No. 1: Penn National Gaming (PENN)
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Source: Chart courtesy of StockCharts.com” data-reactid=”26″>
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Source: Chart courtesy of StockCharts.com
PENN) has been a beast, emphasized by Thursday’s 7.4% pop to new highs.” data-reactid=”31″>Penn National Gaming (NASDAQ:PENN) has been a beast, emphasized by Thursday’s 7.4% pop to new highs.
The move sent the stock gapping up to the 161.8% extension and rallying from the open. Now this can go one of two ways. If the 161.8% extension holds as support, look for Penn to rally toward the two-times range extension near $75.
InvestorPlace – Stock Market News, Stock Advice & Trading Tips” data-reactid=”33″>InvestorPlace – Stock Market News, Stock Advice & Trading Tips
If it breaks below the 161.8% extension, investors can expect a possible test of the 20-day moving average and a gap-fill toward $59.
Below both of these marks would put the September low in play at $51.19, followed by a possible retest of the 50-day moving average. On a deep correction, the big-time breakout level at $40 could be tested.
Top Stock Trades for Tomorrow No. 2: DraftKings (DKNG)
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Source: Chart courtesy of StockCharts.com” data-reactid=”52″>
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Source: Chart courtesy of StockCharts.com
DKNG) is also moving well, as shares rallied more than 9% at one point in the session.” data-reactid=”53″>DraftKings (NASDAQ:DKNG) is also moving well, as shares rallied more than 9% at one point in the session.
flagged the stock’s potential to rotate over last week’s high, putting a test of the $43.75 to $44.50 area in play. As you can see on the chart, DraftKings extended into that area on Thursday and was rejected.
If DKNG can hold above last week’s high (at $41.29), it keeps this upper zone in play, and the potential for a move up to new highs.
On a break of last week’s high, we could get a retest into the $35 to $37 area, where DraftKings finds several key moving averages and uptrend support (blue line).
Top Stock Trades for Tomorrow No. 3: Beyond Meat (BYND)
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Source: Chart courtesy of StockCharts.com” data-reactid=”71″>
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Source: Chart courtesy of StockCharts.com
BYND) was displaying a fair amount of relative strength on Thursday, although the late-day selloff weighed on its gains.” data-reactid=”72″>Beyond Meat (NASDAQ:BYND) was displaying a fair amount of relative strength on Thursday, although the late-day selloff weighed on its gains.
If shares can sustain over these levels, look for Beyond Meat to take out Thursday’s high near $150. Above could put $160-plus in play, as well as the 2020 high at $167.16.
Below $142.50, and BYND may test back down into the $130 area — where it finds the 20-day and 50-day moving averages. Below puts $120 range support back in play, which has held up incredibly well over the past few months.
Top Stock Trades for Tomorrow No. 4: RH Inc (RH)
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Source: Chart courtesy of StockCharts.com” data-reactid=”92″>
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Source: Chart courtesy of StockCharts.com
RH) has been on fire, just slowly grinding higher. That is, until Thursday’s 20% rally. The crazy thing with this name is the range. ” data-reactid=”97″>RH Inc (NYSE:RH) has been on fire, just slowly grinding higher. That is, until Thursday’s 20% rally. The crazy thing with this name is the range.
If it continues higher, look for RH to reclaim $400 and potentially run to the two-times range extension at $439.41. If it really takes off, the 261.8% extension could be in play at $552 down the road.
Below the 161.8% extension, and RH may test down into uptrend support (blue line) and the prior pre-earnings high near $345.
Future Blue Chips and is on Twitter @BretKenwell.
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