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