The markets got off to a slow start Monday, while volume was well below average. However, it was a calm day and investors got a chance to find their footing after an up-and-down Friday. Let’s look at a few top stock trades.
Top Stock Trades for Tomorrow #1: Best Buy
Best Buy (NYSE:BBY) was moving slightly higher on Monday, rallying 1.5% at one point. Part of that enthusiasm came from Morgan Stanley analysts, who slapped a $100 price target on the stock.
Also helping push the stock higher were positive reports of trade talk, the latter of which caused a poor earnings report to crush the stock in August.
Here is the interesting part, though. BBY stock is trying to push above $68, which has been resistance since the post-earnings decline. If it can reclaim this mark, it puts a series of overhead targets on watch.
The first is the 50-day moving average near $69. Above that and the 23.6% near $71.50 is next. Should it fail and recent support near $65 gives way, see that the 200-day moving average acts as resistance.
Top Stock Trades for Tomorrow #2: Fastly
Fastly (NYSE:FSLY) erupted higher on Monday, climbing more than 10% at one point on the day. The action follows a dismal Friday performance. However, that was an important day, as FSLY tested the key $25.50 area.
This zone acted as resistance in May and July. After pushing through it in August though, this area has since been support.
Below Monday and Friday’s low, and the 50-day moving average is possible on the downside. Over the 61.8% retracement and 20-day moving average though, and $30+ is on the radar for FSLY.
This stock has put in a few days over $33.80, significantly above current levels.
Top Stock Trades for Tomorrow #3: Lululemon
Piper Jaffray came out with a $227 price target for Lululemon Athletica (NASDAQ:LULU) on Monday. The note follows the stock’s post-earnings pop-and-fade action from earlier this month and suggests new all-time highs are on the table.
Shares filled their earnings gap on Friday and are moving nicely higher on Monday. Over $200 and the all-time highs near $204.44 are possible. If it gets there, it also puts channel resistance (blue line) in play.
Below Friday’s lows, then channel support, along with the 50-day moving average become must-hold levels.
Top Stock Trades for Tomorrow #4: Nike
Nike (NYSE:NKE) is set to report earnings on Tuesday after the close and shares have been coiling tightly in anticipation.
$89 is proven resistance and each test has brought in the sellers. Each time, the stock has managed to put in a higher low though, shown via the purple line. More recently, uptrend support (blue line) and $86 have been buoying NKE stock.
On the post-earning move, we need to see Nike breakout and close over $89 or breakdown and close below $86. The former is self-explanatory, but if it’s the latter, there are a few downside targets to know.
The first is the 50-day moving average near $85, the second is the 200-day down near $82.50. Below both brings the higher lows trend into play. Below the August lows would create some problems, technically speaking.