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4 Top Stock Trades for Thursday: FB, JNJ, EA, AMD

Bret Kenwell

All eyes were on the Federal Reserve Wednesday, as the Fed cut interest rates by 25 basis points. Let’s look at a few top stock trades as earnings remains in full swing.

Top Stock Trades for Tomorrow No. 1: Facebook (FB)

Top Stock Trades for Tomorrow No. 1: Facebook (FB)

Facebook (NASDAQ:FB) will report earnings after the close Wednesday. Shares continue to struggle with the $190 level, near where the 78.6% retracement happens to come into play.

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So far, FAANG hasn’t been all that volatile on earnings. Will FB stock be any different?

On the upside, see if FB stock can take out its recent high at $192.53. Over $195 opens the door to $200, with the 52-week high sitting up at $208.66. At the very least, see that it holds $190 should shares rally.

On a decline, I want to see FB stock hold the 200-day moving average near $180. That’s less than 4% from current levels. Below puts $175 on the table, which is roughly the 61.8% retracement.

Below the October low of $173.09, range support near $160 is possible.


Top Stock Trades for Tomorrow No. 2: Johnson & Johnson (JNJ)

Top Stock Trades for Tomorrow No. 2: Johnson & Johnson (JNJ)

Johnson & Johnson (NYSE:JNJ) stock is rallying after announcing that it did not find any traces of asbestos in its recent baby powder recall.

The stock has been stuck in a painful trading range, between $132 on the upside and $126 on the downside. Near the former now, let’s see if JNJ can clear $133 — the 50-week moving average — and maintain over range resistance.

If it can do that, the recent high at $137.50 is on the table. If it can’t clear $132, it may remain range-bound for longer. This one keeps wanting to break out, but so far has failed to do so. A weekly close above $133 could ignite a larger rally.


Top Stock Trades for Tomorrow No. 3: Electronic Arts (EA)

Top Stock Trades for Tomorrow No. 3: Electronic Arts (EA)

Electronic Arts (NASDAQ:EA) delivered an earnings beat, sending shares higher on Wednesday.

However, the modest rally keeps EA stock trapped in a wedge pattern (blue lines). While support held Wednesday, shares have a cluster of moving averages overhead, as well as wedge resistance.

For bulls looking for a position, it may be better to wait for EA to gain some more bullish momentum. Clearing wedge resistance puts it above all of its major moving averages and puts the 78.6% retracement on the table. Above that and $103.50 is possible, with the 52-week highs sitting up near $109.

Below wedge support, and the $91 mark is on the table. Below that and $87 is possible.


Top Stock Trades for Tomorrow No. 4: AMD (AMD)

Top Stock Trades for Tomorrow No. 4: AMD (AMD)

Shares of Advanced Micro Devices (NASDAQ:AMD) are trading pretty well even though they’re trading around even on Wednesday after AMD missed on revenue estimates and reported in-line earnings results. However, many bulls likely consider it a win considering the stock rallied more than 20% from the October lows to the recent high at $33.91.

Further, the stock continues to hold up north of $32, a bullish development given that this level has been resistance for two months.

Each rally to $34.30-plus has been sold into, but let’s see if we can eventually get a close over this mark. If AMD is able to do so, the highs at $35.55 are on the table. Below $32 and bulls need to see the 78.6% retracement and 100-day moving average hold as support near $31.50. Below puts the 50-day moving average near $30.50 on the table.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities.

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