While down slightly on Friday, the stock market has done a pretty good job of not giving up its gains from this multi-week rally. Now investors are starting to wonder just how much higher we can go without a correction. Let’s look at a few of Friday’s top stocks to get an idea of what’s moving and what to watch for Monday morning.
General Motors (GM)
Shares of General Motors (NYSE:GM) are experiencing a nice surge on Friday, jumping more than 8% and hitting $38. Can it get over this mark?
That level has become notable over the past 15 months, but that doesn’t mean it will act as resistance. After all, GM raised its 2018 outlook and provided a much better-than-expected outlook for 2019. Shares are not yet overbought, so if GM can continue higher on Monday or Tuesday, it will likely draw in buyers once it’s over that mark.
As long as it stays over the 200-day, I like GM over a long-term outlook.
Activision Blizzard (ATVI)
Click to Enlarge Unlike GM, it was a bad day in the C-suite for Activision Blizzard (NASDAQ:ATVI). Shares tumbled almost 10% following some bad news about one of the company’s largest game franchises.
We’re using a weekly chart above, but the daily chart showed a clean rally up to the 50-day moving average and a swift denial. We can see the same thing on the chart above, once ATVI was rejected from its 10-week moving average.
It also failed to get back above its 200-week moving average, another unattractive development. In any regard, it continues to hold up over $45. Should ATVI lose this level, I have no interest in it on the long side — not that I have much conviction in the first place.
I would consider a short position on a close below $45, targeting at least last month’s lows for a quick trade. Above the 200-week and I would get more interested from the long side.
Click to Enlarge We recently took a closer look at Tilray (NASDAQ:TLRY), looking for a possible breakout to $100 per share. At that mark now, some investors may consider taking profit. I would at least reduce my long position had you got in around this time.
Should the cannabis space continue with its recent momentum, perhaps TLRY will have room up to $120. Bulls may consider using a close below the 50-day as their stop-loss. Just don’t let this big winner turn into a loser.
New Age Beverages (NBEV)
More importantly, it keeps butting up against downtrend resistance and a large breakout could be looming.
Should it do so, traders could look at $7 as their first target and re-evaluate from there. It’s a great risk/reward setup for bulls.
Click to Enlarge Visa (NYSE:V) is a long-term winner and I love its tollbooth-like business model. While falling gas prices won’t do V any favors, strong holiday spending and record online sales bode well for credit card companies.
Shares are technically holding up above downtrend resistance (blue line), but are also just over the 50-day and 200-day moving averages. That bodes well for the stock and puts a move back into the $140s on the table.
Should it break down, bulls can use this trend line and these moving averages to limit their risk. If long-term investors are lucky, they’ll get V on another pullback to ~$123. If support fails, see how the $130 to $133 levels holds up.