During a quiet Friday trading session in August, U.S. equities rallied following the Federal Reserve’s comments out of Jackson Hole, Wyoming. Investors will have plenty to watch in this final week of August; a month that has seen the Dow Jones gain 1.5%, the S&P 500 add approximately 2.1% and the Nasdaq put on a hefty 3.6%.
Even with across-the-board gains like that, it’s important that you continue to invest in winners. When you wake up Monday morning, make sure you’re keeping an eye on the following five top stocks:
Top Stock Trades for Tomorrow #1: Netflix
Shares of the video-streaming giant Netflix (NASDAQ:NFLX) have been surging lately. After bouncing off the $315 level, we’re already back over $350 just a few days later.
Bulls can stay long, so long as Netflix is above $350. Look for possible resistance near the 50-day at $370.
If $350 fails as support, wait to see where Netflix sets up again. After big moves, remember to keep it simple!
Top Stock Trades for Tomorrow #2: PayPal
PayPal (NASDAQ:PYPL) was one of our top buys at the beginning of the month. The company reported strong earnings results and found support at the top of its prior range.
Where to now? Now near $90, PayPal can retest its highs near $92 if momentum holds up.
Even though the MACD (blue circle) shows promise and shares are not yet overbought, it might be too late to buy in right now. If only because the risk/reward isn’t as favorable.
If PayPal chills for a day or two, and if it perhaps pulls back to the $88-ish area, PYPL stock may be a worthwhile long.
Top Stock Trades for Tomorrow #3: Salesforce
The RSI and MACD readings (blue circles) both suggest Salesforce (NASDAQ:CRM) can continue higher into its earnings report this week.
Its breakout over the $148 level was impressive and would serve as a solid buying opportunity should shares correct lower post-earnings.
Where else do we want to be buyers? Pullbacks into the 60-day and 75-day moving averages have, at least for the past year, been tremendous buying opportunities. Not that that’s a surprise to InvestorPlace readers.
In any regard, keep doing what’s been working until it doesn’t work anymore.
Top Stock Trades for Tomorrow #4: MasterCard
Like CRM, MasterCard (NYSE:MA) has been a great buy-the-dip stock. We liked MA stock near this $200 level and now we’re getting the bounce.
That puts the prior highs back on the table. Should momentum continue, look for a breakout to new highs. Otherwise, keep buying those dips. Like others, keep it simple.
Top Stock Trades for Tomorrow #5: BlackBerry
Breaking above the 50-day moving average and BlackBerry (NASDAQ:BB) is looking much more attractive. Shares have had several strong days of action.
Big-time resistance doesn’t come into play until about $11.50, and that resistance is trending lower. Also worth noting is that the 200-day is just below, at $11.30. The 31.8% retracement is also up near $11.40, (purple line).
The nearby 100-day moving average is up near $10.75 and could act as short-term resistance. The 100-day has played a relevant role over the past 12 months for BB stock.
So what does all of this mean? BB could have some serious upside so long as its recent trend holds up. If shares begin to pull back, look for support down near $10.25 to $10.30.
A rally up to the low-$11s could be in the cards if shares continue higher.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long PYPL and CRM.
