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4 Top Stock Trades for Thursday: SHOP, TTD, UPST, RBLX

Geopolitical news and soundbites out of Eastern Europe continue to hit the headlines, which continues to fuel the algos. It makes for a difficult and frustrating trading environment for many investors. Despite that, though, let’s look a…

Geopolitical news and soundbites out of Eastern Europe continue to hit the headlines, which continues to fuel the algos. It makes for a difficult and frustrating trading environment for many investors. Despite that, though, let’s look at a few top stock trades for Thursday.

Top Stock Trades for Tomorrow No. 1: Shopify (SHOP)


Click to EnlargeSource: Chart courtesy of TrendSpider

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Shopify (NYSE:SHOP) is getting buried on earnings, and now the crown appears to be falling off the prince’s head. Shopify was an anointed stock for quite some time, trading with a sky-high valuation and boasting monstrous gains.

Now down more than 55% from the highs, and the stock has been badly bruised.

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On the weekly chart, you can see how shares were trying to bottom. However, Wednesday’s gap-down action on earnings sent SHOP stock plunging through last month’s low.

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Prospective bulls may look at the 200-week and 50-month moving averages now as a possible bounce spot. If that works, see how the stock handles the $780 mark. Below these measures could open up the $600 area.

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Top Stock Trades for Tomorrow No. 2: The Trade Desk (TTD)

Top stock trades for TTD
Click to EnlargeSource: Chart courtesy of TrendSpider

The Trade Desk (NASDAQ:TTD) is not a stock that I felt deserved to trade lower after a really strong earnings report.

It was higher in the premarket and turned lower shortly before the open. It tried to find its footing early, but the selling was too strong, ultimately driving it to undercut last week’s low at $72.20.

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Now back up through the 200-day and 10-day moving averages, TTD stock continues to struggle with the 50-day. If it can push through this measure, let’s see how it handles last week’s high near $85 and the declining daily VWAP measure.

Above $85 and it could put the 61.8% retracement in play near $91. However, below the 200-day could put today’s low back in play.

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Top Stock Trades for Tomorrow No. 3: Upstart Holdings (UPST)

Top stock trades for UPST
Click to EnlargeSource: Chart courtesy of TrendSpider

Upstart Holdings (NASDAQ:UPST) is incredibly impressive. Shares ripped higher by about 36% on the day and held a bulk of its gains for most of the session.

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It cleared the key $128.50 level and the 50-day moving average. Now that becomes a level that bulls want to see hold as support. If you’re wondering what UPST stock ran into as far as resistance, look no further than the daily VWAP measure.

If it can clear this mark and Wednesday’s high, it opens the door to the 50% retracement near $173.

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Otherwise, we need to see where support comes into play on the downside. With any hope, this one has seen the low because bulls need a bottom in growth.

Top Trades for Tomorrow No. 4: Roblox (RBLX)

Daily chart of RBLX stock
Click to EnlargeSource: Chart courtesy of TrendSpider

But that bottom certainly isn’t showing in Roblox (NYSE:RBLX). Shares hit new all-time lows after disappointing quarterly results.

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It was putting in a solid series of higher lows, while struggling with the $73 level. Bulls were hopeful that earnings would be the accelerant to break the stock out, potentially putting $80-plus in play.

That wasn’t the case, though.

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Instead, the stock gapped below last week’s low and nose-dived right into last month’s low of $53.63. So far, the stock is trying to stage a low, but it’s far from a guarantee at this point.

Aggressive bulls can try to pick a bottom in this against Wednesday’s low. However, I would rather go where the money is going, which if we’re talking about growth stocks, that’s TTD stock and UPST stock — at least among Wednesday’s movers. Buying dips in these names seems like a safer bet, but see how RBLX stock holds up vs. Wednesday’s low. And don’t be stubborn.

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On the date of publication, Bret Kenwell held a long position in TTD. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.

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