A reported Brexit deal sent stocks higher in morning trade, although equities had trouble maintaining those gains throughout the session. Let’s look at a few top stock trades for Friday.
Top Stock Trades for Tomorrow No. 1: Morgan Stanley (MS)
However, it still remains range-bound between $39.50 and $45.50. Until it can push through resistance, it may remain stuck in this range.
Top Stock Trades for Tomorrow No. 2: Facebook (FB)
Despite a continual flow of negative news and headlines, Facebook (NASDAQ:FB) stock continues to hold up.
It’s above all of its major moving averages, as well as downtrend resistance (blue line). Now running into its 78.6% retracement and a recent level of resistance near $190, it will be vital for bulls to push it through this mark.
If it can, look for a rally above last month’s high at $193.10, and then above $195. In this event, look for $190 to act as support on a pullback. If resistance holds steady, look to see if the 50-day moving average can buoy FB on a pullback.
Top Stock Trades for Tomorrow No. 3: Honeywell (HON)
Honeywell (NYSE:HON) is advancing on earnings, but is struggling to push through its downtrend (purple line) and the 100-day moving average. If it can do that, it puts the $172.50 mark on the table, with the $177.58 highs above that.
On the downside, look to see if the 50-day moving average can act as support. Below it puts a test of the 200-day moving average and uptrend support (blue line) in the cards.
Top Stock Trades for Tomorrow No. 4: Gogo (GOGO)
A look at Gogo’s (NYSE:GOGO) daily chart above shows the company has secured a higher low, which is now connected by a blue trend line on the chart above. I want to see shares push through $6, putting $7-plus on the table.
As you can also see, momentum is starting to turn in bulls’ favor via the MACD reading (blue circle). If $6 acts as resistance, bulls need to see the 50-day act as support.
On the weekly chart above, traders can see the stock coiling below $6 and the 100-week moving average. Above them opens the door to the recent high at $7.23. Above that and $8 is possible. On a longer timeframe, the 50-week moving average is a must-hold mark.
Gogo has been an excellent trade for us lately, although it is a speculative play.
Top Stock Trades for Tomorrow No. 5: Union Pacific (UNP)
Union Pacific (NYSE:UNP) is rallying on earnings, but it’s running into some headwinds. Shares are being stymied by the 200-day and 100-day moving averages. It’s also hitting channel resistance (blue line).
However, not all hope is lost for the bulls. On the move, UNP reclaimed its 50-day moving average. It also held the 61.8% retracement. If shares can stay above these two marks, then bulls may look for it to push through resistance.
Below the 61.8% and UNP starts to lose some of the little appeal that it has. A fall below this mark could usher in $157.50 or lower and even drop the stock into the low $150’s.
The charts are messy for this one. Over the 61.8% is good, but over the 100-day moving average is far better. Some may prefer to wait for a clean breakout over $170, putting $178-plus on the table.