5 Top Stock Trades for Thursday: Aurora Cannabis, Roku, Rite Aid

Another robust trading session has the S&P 500 threatening to run higher, especially if the index can stay over this ~2,800 level. That said, there were some big movers in both directions today, so let’s get a look at our top stock trades moving forward.

Top Stock Trades for Tomorrow #1: Aurora Cannabis

Shares of Aurora Cannabis (NYSE:ACB) were flying higher Wednesday, up almost 13% after it was announced that Nelson Peltz would be an advisor to the company. It thrust the stock over resistance near $8.

InvestorPlace - Stock Market News, Stock Advice & Trading Tips

• 7 Retail Stocks Winning in 2019 and Beyond

This mark had kept a lid on ACB over the last five months and as it gives way, there’s a lot of potential upside. Don’t forget, in October ACB was trading north of $10 while its 52-week high is $12.52.

Below $8 and there’s cause for concern among bulls. I would not be long this name below the 21-day moving average or uptrend support.

Top Stock Trades for Tomorrow #2: Roku

In the opposite direction we have Roku (NASDAQ:ROKU). This stud is still up 100% so far on the year, but a pair of downgrades on Wednesday morning knocked it down by $10 a share. Sheesh!

Clearly this doesn’t change Roku’s fundamental outlook, but the declines likely ushered in profit takers who have been long this stock for its post-earnings run. Now I need to see uptrend support hold and I want to see Roku stock close above the 21-day moving average.

If that’s the case, bulls may have a case to be long, but it wouldn’t be bad for Roku stock to digest some of this big move. A test of this $58 area would allow ROKU to retrace about 50% of its day-one earnings rally. Also worth pointing out is that Roku stock, at its lows on Wednesday, sat at the 61.8% Fibonacci retracement from its post-earnings range. See if it holds Wednesday’s low and reclaims the 21-day.

Top Stock Trades for Tomorrow #3: Rite Aid

What have we always said here on InvestorPlace? Do. Not. Invest. In. Rite Aid (NYSE:RAD)!

There’s a reason why as this name is volatile and circling the drain. Long or short can get both investors hurt and that’s why it’s been a no-touch for me for a long time. Notice on the chart that the stock couldn’t even get above $1 back in January.

An eventual delisting is likely and even today, RAD couldn’t hold its gains. I expect this one to take out 65 cents and if it does, it will likely go below its 52-week low at 60 cents. I’m not shorting, but I’m definitely not buying it.

Top Stock Trades for Tomorrow #4: Express

Another struggler, investors had a warning in Express (NYSE:EXPR) before Wednesday’s 10.5% post-earnings fall.

Notice the purple arrows on the chart. Arrow No. 1 told investors that support near $5.08 was no longer in play. Arrow No. 2 showed that the retest of support failed, just before earnings. Even if it had barely reclaimed support, the pre-earnings breakdown was warning enough with a name like this.