After a bumpy Friday and a lower open on Monday, U.S. stocks pushed higher again. That said, let’s look at a few top stock trades as we knock out the first trading day of the week.
Top Stock Trades for Tomorrow No. 1: Invitae (NVTA)
I have really liked Invitae (NYSE:NVTA) over the past few years, although it’s been a bumpy ride. On Monday, shares rose more than 40%, on a tie-up with ArcherDX.
Shares cleared the 200-day moving average as resistance on Friday, but exploded through $19 on Monday. In fact, the stock ran all the way up to long-time resistance between $27 and $28.
Bulls who have been long may consider taking some profit on the move, although a close over $28 could trigger a move to $30-plus.
On the downside, though, I really want to see the 78.6% retracement hold as support near $23.59. Below that puts Monday’s low in play at $21.50, followed by $19 at the moment.
Top Stock Trades for Tomorrow No. 2: Microsoft (MSFT)
After toying around just under its prior all-time high, Microsoft (NASDAQ:MSFT) has finally found some momentum.
Shares opened at new highs on Friday, but closed lower on the day. On Monday, however, the stock took out those highs as it looks for $200 per share. From here, let’s see if we can get up to the 123.6% extension at $203.22. Above that puts the 138.2% extension in play at $211.62.
On the downside, though, look for a break back below $195. Below puts uptrend support, the 20-day moving average and $188 level back in play.
Top Stock Trades for Tomorrow No. 3: Fastly (FSLY)
It’s been a powerful rally, as shares have now pushed through the $60 mark. If that were to happen, we discussed a possible run to the 261.8% extension, up near $75. We almost got that today, with a rally to $73.50.
I’m still looking to see if we can get a move to $75. If so, and FSLY still continues higher, it puts the three-times range in play at $84.43.
On a dip, however, see if the $60 level acts as support. Below puts the 20-day moving average and uptrend support in play.
Top Trades for Tomorrow No. 4: Sonos (SONO)
Shares of Sonos (NASDAQ:SONO) are shooting higher, ending Monday up nearly 18%.
Amid the move, Sonos reclaimed the 200-day moving average and the 61.8% retracement, while stalling at the 78.6% retracement. On a continued move, see if Sonos can take out this level of resistance.
Above it puts the $15.50 to $16 resistance zone in play. On the downside, however, see if the 61.8% retracement holds as support.
Top Trades for Tomorrow No. 5: Intel (INTC)
The $59 level has been decent support, but keep an eye on the $58 area. That’s this month’s low, and below it puts the 200-day moving average as well as the $56 level in play.
As shares contend with the 50-day moving average, I don’t want to step into a muddy situation. In other words, let’s see if INTC can clear the 50-day and 20-day moving averages, as well as last week’s high at $61.65. That would make the setup much cleaner, technically speaking.
Above puts $64 in play, followed by $67.50.