After a few strong days in the stock market, equities are coming under pressure Thursday. Earnings results from Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM) and Lam Research Corporation (NASDAQ:LRCX) are not inspiring much confidence in the semiconductor space, weighing on names like Apple Inc. (NASDAQ:AAPL) and the rest of tech. With that in mind, let’s see what stock trades are setting up for Friday.
Trades for Tomorrow #1: Lam Research Stock
Let’s start with one of Thursday’s culprits, Lam Research. LRCX actually beat on earnings and revenue estimates in the quarter and provided better-than-expected guidance. However, shipment guidance for next quarter came up a little light.
I like this chart because it’s simple. There is short-term downward pressure on LRCX stock price and there’s also a floor of support right near $190. The 200-day is just below at $186. Is this the most bullish chart? No. But investors who are bullish could take a long position with an attractive risk/reward.
Trades for Tomorrow #2: Amazon Stock
Amazon.com, Inc. (NASDAQ:AMZN) saw a nice pop on Thursday following founder and CEO Jeff Bezos’ letter to shareholders. In it, he told us that the company has surpassed 100 million Prime members in the U.S., among other things.
If the stock market comes under pressure, waiting for a pullback to $1,500 makes sense. That way we can see if AMZN stock finds support at this level. If it fails as support, $1,450 is the next line in the sand.
While this is a great company, Amazon has been tricky lately because of the U.S. President’s constant and unpredictable negative tweets about the company. Still, with how well cloud computing is doing and what a favorite holding AMZN remains, we’re looking to buy on dips. If $1,450 and $1,500 hold, look for a retest of its highs in the not-too-distant future.
Trades for Tomorrow #3: Raytheon Stock
I actually tweeted this one out about a week ago, and the breakout came to fruition. Now consolidating under $230, bulls may try to push this one higher, especially if geopolitical tension escalates in the near term.
If not, look to buy RTN stock on a pullback to $220, assuming it holds as support.
Trades for Tomorrow #4: Alphabet Stock
Despite a sloppy, down day for the Nasdaq, Alphabet Inc (NASDAQ:GOOGL) is enjoying Thursday, up more than 1%.
I also tweeted about a potential breakout in GOOGL about a week ago and have explained several times why it’s a buy near $1,000. And how encouraging it is to see GOOGL trading higher on a down day? Very. Especially when it pushes through resistance.
If Alphabet can hold onto these gains and add to them on Friday or early next week, it will have a clear shot at $1,140 or higher. It’s not overbought and has bullish momentum (blue circles), pushed through the 50-day and 100-day moving averages on Thursday and is above a notable level at $1,080.
Let’s see how it shakes out.
Trades for Tomorrow #5: GE Stock
General Electric Company (NYSE:GE) has been a big huge loser. Down 21% this year and 54% over the past 12 months, has GE stock finally bottomed?
The problem with GE is that it’s given us an endless series of false bottoms. Shares drop, consolidate, rally on bad news (which is usually a great thing!) and then ultimately tumble down and make new lows. If you don’t believe me, just look at the chart.
Right now we have GE stock rallying and testing the 50-day moving average, a level of resistance over the past year. The RSI (orange line up top) has struggled with the 50.0 measurement over the past 12 months. Where prices are now, I’ve also extended the previous support level, showing that it may prove to be resistance.
Making all of this even harder? GE reports earnings on Friday and has an investor meeting next week on April 25th.
Maybe it’s short-covering heading into the print. Perhaps it’s bulls’ growing ever-so-slightly optimistic that the worst is over. It could even be the bottom, but I’m not putting my money on it. I would rather miss a 10% rally off the lows and buy with confidence rather than dump cash into GE stock now and pray that this is finally the bottom.
An RSI over 50, shares above the 50-day moving average and over $14 would be a good start.
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