It was a choppy and frustrating trading session on Friday, as overnight optimism was quickly sapped from U.S. stocks despite China and the U.S. coming to an agreement on phase one of the trade deal. Let’s look at a few top stock trades from the day.
Top Stock Trades for Monday No. 1: Oracle (ORCL)
Oracle (NYSE:ORCL) shares are slipping 3.5% on Friday as investors digest the company’s latest earnings report. The move drops the stock from resistance near $57 down toward uptrend support at $54.50.
Luckily for bulls, ORCL also has the 100-day and 200-day moving averages nearby, even though it broke below the 50-day moving average in its post-earnings decline.
So what now? Investors have a low-risk long setup with several support levels nearby. Those who go long can aim for a rebound back up toward resistance, with hopes of a breakout should it get there.
If support fails — say by dropping below $54 — then traders can punch out for a minor loss on their position.
Top Stock Trades for Monday No. 2: Broadcom (AVGO)
Now the stock is trying to hold up over prior April and May resistance near $315, as well as its 20-day moving average. If the stock can stay above Friday’s low and reclaim $320, then the bulls will likely be back in control, with the 52-week high of $330.16 being the eventual upside target.
If nearby support fails, look for a potential drop down to $300.
Top Stock Trades for Monday No. 3: Shopify (SHOP)
What a beautiful move Shopify (NYSE:SHOP) put in on Friday. While the rest of the market was stuck in choppy waters, Shopify ripped higher by more than 5% at one point.
It launches the stock out of that nice little consolidation triangle it was in. Now that it’s over $375, $400 is on the table. Above that and its highs at $409.61 are possible.
A break of $375 on the downside puts $340 and the 50-day moving average on the table.
Top Stock Trades for Monday No. 4: Snap (SNAP)
After shares of Snap (NYSE:SNAP) fizzled out in September and failed to hold support, bulls were throwing in the towel. Slowly but surely though, the stock has started to find its groove once again.
The stock continues to put in a series of higher lows (blue line), while holding the 200-day moving average as support. Now over the 50-day and 20-day moving averages, look to see if SNAP can breakout over the $15.50 level.
Above it and the $15.90 November high will be the next target, with $16-plus possible above that. On a pullback, see that uptrend support and the 200-day moving average continue to hold as support.