5 Top Stock Trades for Monday: AMD, BAC, FB, GE, DE

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top stock trades - 5 Top Stock Trades for Monday: AMD, BAC, FB, GE, DE

Friday was a big day for investors. On Thursday, we said bulls would have liked to see a bigger rebound following Wednesday’s brutal beating. But Friday proved strong, with U.S. stocks posting impressive gains across the board.

Let’s look at a few top stock trades going forward.

Top Stock Trades for Tomorrow: Advanced Micro Devices (AMD)

Top Stock Trades for Tomorrow: Advanced Micro Devices
Source: Chart courtesy of StockCharts.com

Advanced Micro Devices (NASDAQ:AMD) has been all over the map lately. Luckily, we’re getting new levels to work with on the charts.

For now, the 100-day moving average is buoying the stock, with short-term uptrend support also helping to guide AMD higher. Ideally, bulls will see shares reclaim prior uptrend support (blue line), as well as the 20-day and 50-day moving averages.

If AMD stock can do that, a test of resistance between $34 and $34.50 is on the table. If it can’t reclaim these levels, they may act as resistance going forward. That puts the 100-day back on the table.

If it falls below the 100-day, the $29.21 lows and the $27.65 lows are possible.

Bank of America (BAC)

Top Stock Trades for Monday: Bank of America (BAC)
Source: Chart courtesy of StockCharts.com

Is Bank of America (NYSE:BAC) a safe buy? It’s hard not to like the stock down here. Not only has this $26.25 to $26.50 area proven to be solid-range support for all of 2019, but BAC stock has put in three straight days with almost identical lows.

The fact that these lows held gives longs a great risk/reward situation. $26 can be a stop out point for longs, while they look for a rebound higher. $27.50 is a conservative target, but $28 doesn’t seem to be out of the picture.

A rebound up to the 50-day and 100-day confluence near $28.75 also seams reasonable. Remember, this stock was at $31 a few weeks ago and these big shakeouts have usually been good buying opportunities. Near range support, it’s a worthy risk.

Facebook (FB)

Top Stock Trades for Monday: Facebook (FB)
Source: Chart courtesy of StockCharts.com
Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) is holding trend right now, while Amazon (NASDAQ:AMZN) has quite a bit of support nearby too. Facebook (NASDAQ:FB) though? Shares are looking suspect at the moment.

So far, support is holding near $179 to $180, but downtrend resistance (blue line) is squeezing FB lower. Falling below most of its major moving averages isn’t helping the bulls’ case either.

Over downtrend resistance will help, but for FB stock to really have upside potential, it needs to clear its 50-day and 100-day moving averages. Below $180, and range support at $160 is in play.

General Electric (GE)

Top Stock Trades for Monday: General Electric (GE)
Source: Chart courtesy of StockCharts.com

What a wild ride this one has been on the past two days. Shares of General Electric (NYSE:GE) were pulverized on Thursday after a whistleblower cited concern over the company’s accounting. The CEO shot back and put his money where his mouth is, buying $2 million worth of stock.

The recent lows held well, as GE stock charges back toward $9. Now though, it’s key to see if General Electric can reclaim the $9 to $9.25 area or if this zone acts as resistance.

Deere (DE)

Top Stock Trades for Monday: Deere (DE)
Source: Chart courtesy of StockCharts.com
Deere (NYSE:DE) stock is up almost 4% heading into the weekend after the company reported its quarterly results after the close. I don’t love the set up in Deere, particularly given the current trading environment. However, shares did test roughly the same low for three straight sessions, all of which held.

Anyone taking a long flyer on DE should note that level — approximately $141 — as their potential stop out mark. If shares break out over short-term downtrend resistance (blue line), a run to the 200-day is possible. If $142.50 holds as support, bulls can stay long.

A breakdown below $141 could send DE stock down to $132.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long BAC, AMZN and GOOGL. 

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.


Article printed from InvestorPlace Media, https://investorplace.com/2019/08/5-top-stock-trades-for-monday-amd-bac-fb-ge-de/.

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