After starting off lower on the day, equities made a nice push into the green on Friday. With that in mind, let’s look at a few top stock trades for next week.
Top Stock Trades for Monday No. 1: General Electric (GE)
Click to Enlarge
General Electric (NYSE:GE) looks bad, doesn’t it? I mean, this says all you need to know right here: While the S&P 500 has rebounded tremendously from the March lows, GE stock is breaking to new lows this week.
Shares lost the critical $6 mark earlier this week, as the 20-day moving average and downtrend resistance squeezed shares below this key support mark. Now, it’s clinging to $5.50 like it’s life depends on it.
A move below puts $5 on the table. On a rebound, bulls need to see shares reclaim $6, as well as the 20-day moving average and downtrend resistance. Above puts the 50-day moving average in play.
But truthfully, there’s a lot of good-looking stocks out there — why not play one of those instead?
Top Stock Trades for Monday No. 2: Nvidia (NVDA)
Click to Enlarge
Speaking of good-looking stocks, how about Nvidia (NASDAQ:NVDA) stock? Shares hit new all-time highs on Friday, as bulls bid it up into next Thursday’s earnings report.
Should shares continue higher, $340-plus isn’t out of the picture, but it’s hard to get really bullish on this one after such a strong move.
On a pullback, the rising 20-day moving average and uptrend support near $300 should buoy the stock. A larger dip likely puts the $270 area back in play, where NVDA will find its 50-day moving average and 61.8% retracement.
I’m not sure if Nvidia will dip ahead of earnings or rally into the print. But if the recent momentum is any guess, a pre-earnings run is possible.
Top Stock Trades for Monday No. 3: Aurora Cannabis (ACB)
Click to Enlarge
Not many investors were looking for a 60%-plus move in Aurora Cannabis (NYSE:ACB) on Friday. In fact, the charts were looking quite bearish with this week’s big break below $8 support.
I said shares needed to reclaim this mark in order to look better on the long side. Clearing its moving averages and downtrend resistance would be next. Did ACB answer the call or what?
The rally puts $13.50 in play, followed by a possible rally north of $15. Longs who want to try and ride ACB stock need to keep an eye on $8. Below that mark and shares will look iffy again.
Top Stock Trades for Monday No. 4: Macy’s (M)
Click to Enlarge
If I didn’t know better, I’d say this chart of Macy’s (NYSE:M) looks just like an airline stock. That’s fitting, with both department stores and airlines under tremendous pressure.
For now, shares continue to hold the $4.75 area. However, as the 20-day moving average pressures it lower, and with Macy’s under downtrend resistance and the 50-day moving average, bears are clearly in control here.
To feel confident on the long side — such as with the move in ACB stock — Macy’s needs to clear these resistance levels on the upside. A quick trade could develop with a move over the 20-day moving average, putting $6 in play. Above all of the mentioned resistance could put $7 in the mix.
Below this week’s low at $4.65 puts the 52-week low at $4.38 on the table.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long NVDA.
