Volatility remains elevated, with the VIX hovering near $20 going into the weekend. Investors are torn between bidding up stocks as the Federal Reserve turns dovish, and selling equities as trade-war worries intensify. Let’s look at a few top stock trades for next week.
Some of these setups will be “short and sweet” because I wanted to get more stocks into this column thanks to the wild moves and as earnings reports continue to come through.
Top Stock Trades for Tomorrow #1: Exxon Mobil
For Exxon Mobil (NYSE:XOM), shares are under pressure after posting its second-quarter earnings results. Above is a weekly chart of the stock, highlighting its two ranges. Generally speaking, $82-$83 has been range resistance and $70-$71 has been range support.
Bulls looking for a long position can buy into support and use a close below $69 as their stop-loss.
Top Stock Trades for Tomorrow #2: Chevron
The two usually report at the same time, and like XOM, Chevron (NYSE:CVX) is also trading lower on the day too.
Also a weekly chart, resistance is clearly marked at $126 to $127. Uptrend support has been in play for three years, with the one exception being December 2018 when the markets were in free-fall.
It coincides with the 50-week moving average at $117.09. A break below $115 negates the long setup, but bulls have a reasonable risk/reward on a slightly further decline.
Top Stock Trades for Tomorrow #3: Aphria
Shares of Aphria (NYSE:APHA) are soaring on Friday, up about 40% at one point. The setup is deadly close to the trade we laid out a few weeks ago. We asked, will Aphria stock stock fall to $5?
After collapsing to $5.02, the answer essentially turned out to be, “yes.” However, we said to negate the descending triangle, a bearish setup, we would need to see shares hurdle downtrend resistance (blue line) and the 50-day moving average.
The stock is doing just that on Friday. Up more than 30% makes it a tough buy, but so long as it maintains above the 50-day and ~$6.30, bulls are back in control.
Top Stock Trades for Tomorrow #4: Arista NetworksArista Networks (NASDAQ:ANET) is getting hammered on earnings, falling more than 11% to $241. Shares are approaching make-or-break territory here in the short term.
$240 has been a significant level in 2019, while the 61.8% retracement sits at $242.
What was an after-hours winner is now a regular-hours loser. Should $240 to $242 fail as support, which seems likely should the market’s selling pressure keep up, the year’s $232.30 lows are on watch. Below that and the $210 to $214 area is on watch.
On the upside, see if ANET can reclaim the 50-day and 200-day moving averages, at $260.19 and $256.44, respectively.
Top Stock Trades for Tomorrow #5: Etsy
Shares of Etsy (NASDAQ:ETSY) are down more than 10% on Friday after reporting earnings. Resistance at $71 held firm, while ETSY gapped below and then failed to reclaim the 20-day and 50-day moving averages in its morning rally.
Uptrend support (blue line) failed as support, too. A test of the 200-day seems like a reasonable assumption now, at $59.08.
$58 was resistance in Q4 and support in 2019. A close below this would be a reasonable stop-loss for those looking to initiate a new position in Etsy stock on Friday’s decline.
Top Stock Trades for Tomorrow #6: U.S. Steel
Failing to hold $13.25 would be disappointing for U.S. Steel (NYSE:X) shareholders. Below Friday’s low of $13.05 could trigger a decline down the May lows below $12.
If $13.25 holds as support, see if X can reclaim prior uptrend support (blue line) and the 50-day moving average at $14.30. If it can reclaim this area, the 20-day at $14.80 is the next upside target to watch, with $15.75 resistance above that.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long ANET.