A disappointing jobs report, cut in oil production from OPEC and a possible rate-hike delay by the Fed weren’t enough. The stock market cratered again on Friday — even after Thursday’s big reversal higher. Some investors are growing worried about a large selloff early next week, and it’s hard to criticize them for it. In lieu of the selling, here are our must-see stocks.
Must-See Stock Charts for Monday #1: Lululemon Athletica
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A top and bottom line earnings beat and in-line outlook weren’t enough to boost Lululemon Athletica (NASDAQ:LULU). Shares sank over 12% on Friday as LULU knifed through its 200-day.
Don’t worry, I’ll spare you the downward-facing dog puns.
If the market is able to find its footing early next week, maybe LULU bottoms out around $112, the gap-up level from June. However, in a tape like this, there is likely a higher probability that LULU fills the gap down to roughly $105. See if that level props up the stock.
Must-See Stock Charts for Monday #2: Ulta Beauty
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Ulta Beauty (NYSE:ULTA) has a similar story, with shares down more than 11% post-earnings.
At the moment, the $260 level is holding as support, but it’s far from convincing, particularly with uptrend support (blue line) nearby. Investors who want to take a long position could use a stop-loss on a close below the 200-day moving average.
Must-See Stock Charts for Monday #3: Twitter
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Twitter (NYSE:TWTR) was one of the few bright spots on the day. Up over 3% at one point, Twitter closed just below flat on the day. Believe it or not, that’s actually pretty good.
So far, it’s holding above its 50-day and 100-day moving averages. It’s also holding up over uptrend support and the backside of prior downtrend resistance. If Twitter could hurdle the 200-day moving average, a rally up to $36 would be in the cards. It’s one of the few short-term long trades that I like right now. Below the 50-day and Twitter loses its luster.
Must-See Stock Charts for Monday #4: Altria
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After making a $1.8 billion investment in Cronos (NASDAQ:CRON), Altria (NYSE:MO) stock wasn’t able to hold onto its gains for the day. On the downside, this stock has been trading terribly, with or without its 5.8% dividend yield.
However, bulls who want to nibble have a limited risk/reward with the stock. A close below $53 can serve as investors’ stop-loss. A rally over $56 could kickstart a larger rally. Keep it simple, particularly at a time like this.
Must-See Stock Charts for Monday #5: Broadcom
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Despite beating on earnings and revenue estimates, providing much better-than-expected guidance, trading at roughly 10 times this year’s earnings and increasing its dividend by more than 50%, Broadcom (NASDAQ:AVGO) stock actually fell on the day. Now yielding almost 5%, bulls’ frustration is understandable.
Aggressive bulls might be buying today’s stagnant move. Others may be waiting for a deeper pullback. Either way, there is a solid risk/reward with $220 support nearby. If it fails, stay clear as a fall to $205 could be in the cards.
I don’t think I would be able to ignore it down there, though.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long TWTR.
