After a nasty upturn on Tuesday, stocks rallied strongly on Wednesday. With that in mind, let’s take a look at a few prominent stock trades accordingly.
The best stock market transactions of tomorrow # 1: Pinterest (PINS)
Pinterest (NYSE:PINS), stocks jumped Wednesday, up more than 10% at some point after the company released its preliminary first quarter results. This move puts the stock at its highest price in a month.
There is a bit more room upside down here, with an area of $ 17.50 to $ 18 more apparent. In addition, the decline in the 50-day moving average is currently close to $ 18.40.
That said, PINS has done a great job in raising these lows by $ 10. Given the reaction to the news on Wednesday, I would not expect another test of this level anytime soon. Instead, see if the stock holds $ 15 down. Below puts $ 12 back into play.
Best stock markets of tomorrow # 2: Alibaba (BABA)
Ali Baba (NYSE:BABA), the stock is on pause, as the stock is approaching its 50-day moving average and its resistance to the downward trend (blue line). After setting a double bottom at $ 170, stocks are trading much better over the long term.
If the stock continues to fall, I want to see if BABA can maintain the 200-day moving average as support. If not, $ 180 is back. If that fails, it puts the $ 170 lows back into play.
On the upside, however, see if Alibaba can recover the 50-day moving average and resistance to the downtrend. This is the big level at the moment.
Best stock markets of tomorrow # 3: Snap (SNAP)
What a beauty of a move Break (NYSE:BREAK). The stocks returned to their spread level starting in February 2019, at $ 8. From there, we witnessed a more vigorous rebound, with stocks rising quickly to $ 12, up 50% in just a few days.
The stock then gave us a shallow dip, before bouncing higher and recovering the 20-day moving average. That gave us a low, which is an uptrend, especially in this ugly band.
Instant stock – and the market for that matter – is not out of the woods yet. But this action was more positive than many would have thought a few weeks ago. From there, however, stocks approach the $ 14 zone, where they face resistance to the downtrend (blue line) and the 50-day moving average.
Above this zone, $ 15.25 is at stake. On a decline, however, it would be encouraging to see Snap maintain the 20-day moving average and the zone from $ 11 to $ 12.
Best stock markets of tomorrow # 4: Baidu (BIDU)
Baidu (NASDAQ:BIDU) trades like shit – to put it bluntly. After peaking at almost $ 150 in January, stocks bottomed out in February before easing in March.
In the midst of this drop, the stock hit its August low and fell below $ 85 before finding its place. Now the stock is flirting again with a loss of August lows close to $ 95. Below, $ 85 is put back into play.
Among the many stocks on the market, I have very little interest in long-term Baidu stocks. If anything, below $ 95 and it looks like a short potential.
Top titles in stock for tomorrow # 5: Bed Bath & Beyond (BBBY)
Bed bath and beyond (NASDAQ:BBBY) resumed a bit of life on Wednesday, rallying more than 20%. However, it comes in a tight spot on charts near $ 6.
If he can clear this area, he puts $ 7 back into play, which is the lowest in August. If it succeeds in clearing this zone, the BBBY share could go up to its moving average downward over 50 days.
Below the 20-day moving average, and $ 4 remains at stake. BBBY is hard to like, especially in this environment. That said, movements like today emphasize how dangerous a short circuit can be.
Bret Kenwell is the director and author of Future Blue Chips and is on Twitter @BretKenwell. At the time of this writing, it was PINS long.