The big rallies in select mid-cap tech continue and while small caps as a whole did well on Friday, larger U.S. indices did not.
Worries over Turkey’s currency put a drag on U.S. stocks, as investors booked gains after more than a week of strong gains. Let’s see what’s setting up for next week as our top stock trades.
Top Stock Trades for Monday #1: Overstock (OSTK)
Overstock (NASDAQ:OSTK) rallied on earnings Friday morning, but gave back a bulk of its gains.
Shares closed well off the highs, but were still up more than 10% on the day. This one has fooled us more than once on the breakout over $40. With Friday’s move though, OSTK is well over that mark now.
Should we get a larger tech correction over the next few days, we may very well find OSTK near that mark. If so and support holds, OSTK may be worth a shot on the long side.
One analyst slapped a $112 price target on OSTK, with a bull case of more than $300 per share. Sheesh!
Top Stock Trades for Monday #2: Intel (INTC)
Speaking of analysts, those at Goldman Sachs downgraded Intel (NASDAQ:INTC) on Friday, helping fuel a near-3% loss.
Shares fell to nearly $46 post-earnings and quickly recovered to more than $50. It didn’t even get a chance to hit downtrend resistance before falling lower, (InvestorPlace readers shouldn’t be surprised though). Now perched on the 200-day, $47 will be the next stop should it fail as support.
Intel is a solid long-term name, but in the short-term, it could still struggle. Over resistance and it’s a different story.
Top Stock Trades for Monday #3: Dropbox (DBX)
Shares of Dropbox (NYSE:DBX) bit the dust on Friday, after it announced its COO is leaving and the company would allow for insider sales in August rather than September. Why? Who knows.
The bottom range of support held, but for bulls to be really encouraged, they need to wait for a rally over $33. Above there and $35 is on the table, and possibly higher. Below and we wait.
Top Stock Trades for Monday #4: Nike (NKE)
So far Nike (NYSE:NKE) is holding up over $80, but should we get some selling pressure in the broader market, that may not be the case.
Nike’s in its groove and that means we want to buy on dips. Aggressive bulls can look to nibble at $78, which is level support and the 20-day moving average. More conservative bulls can buy at the 50-day and uptrend support at $76.
Top Stock Trades for Monday #5: Amazon (AMZN)
Amazon (NASDAQ:AMZN) has been on a monstrous run this year, particularly given its $910 billion market cap. Like Nike, we want to buy AMZN on a pullback.
So where do we buy? A drop to $1,800 would be semi-attractive for short-term traders, as would a fall to $1,750. The latter of the two offers solid level support, as well as support from the 50-day.
Additional support would come into play near $1,660, which conveniently is where the 100-day is also located (not pictured).
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities.
