The markets took it on the chin on Wednesday, with the S&P 500 down more than 2% at one point in the session. Let’s look at a few top stock trades as we enter the end of the week.
Top Stock Trades for Tomorrow #1: Alphabet
From its June Lows, Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) has been trading in a very defined channel (blue lines).
Shares are currently finding support at the 61.8% retracement at $1,175. However, a deeper pullback could take place now that GOOGL stock has broken below its multi-month uptrend.
I would look for a slightly deeper decline in GOOGL, between $1,140 and $1,150. There it has the 50% retracement, the 200-day moving average and prior support from its post-earnings pullback.
Longer term investors will likely consider a deeper pullback in GOOGL as a buying opportunity, given the solid results it had last quarter.
On a rebound, look to see if GOOGL can reclaim its 50-day moving average and prior uptrend support.
Top Stock Trades for Tomorrow #2: Exxon Mobil
Exxon Mobil (NYSE:XOM) about its third-quarter profit, as the results would be below expectations. This hit shares — no surprise there — as the stock breaks below $68.
The $67 to $69 area has been critical in 2019. Below it opens XOM up to a test of downtrend support (blue line) and the December lows.
It’s worth pointing out that sub-$64 has typically been a very good buying opportunity over the last few years.
Top Stock Trades for Tomorrow #3: General Motors
General Motors (NYSE:GM) is struggling to come to terms with the UAW, while its quarterly sales figures
below expectations. Shares continue to move lower as a result.
On Wednesday, shares fell through its one-year uptrend support level (blue line), while also tumbling below the 61.8% retracement.
Look to see if GM can reclaim the 61.8%. Above it puts $36 back in play. Below the 61.8% retracement and GM may continue lower, possibly to $33 where it will find the 78.6% retracement.
Top Stock Trades for Tomorrow #4: Aphria
Aphria (NYSE:APHA) has been struggling lately, falling from $7.14 earlier this month to sub-$5 earlier today.
However, the stock reversed and actually closed higher despite the punishing market session. APHA is one of the better-acting cannabis stocks, but worry about sentiment as the group continues to trade really poorly.
Let’s see if it can reclaim channel support near $5.70 and get back above the 20-day moving average.
Top Stock Trades for Tomorrow #5: Russell 2000 ETF
Last week, InvestorPlace readers were warned about small caps in the Stock ÃÛÌÒ´«Ã½ Today column.
That played out really well for those that took caution, as the iShares Russell 2000 ETF (NYSEARCA:IWM) has fallen about 7.5% in just a few weeks.
Range resistance held IWM in check, and now it’s time to see if it will test down into range support near $145. A break of range support and the August lows at $143.74 would spell trouble.
If IWM falls below those marks, a decline to $135.66 may be in store, which is the 78.6% retracement. Keep in mind, range support held even through the May decline, so below $143 is certainly a cause for concern.
If it holds, look for a bounce up to its moving average confluence.
Bret Kenwell is the manager and author of and is on Twitter . As of this writing, Bret Kenwell is long GOOGL and APHA.
