With four out of the five FAANG components reporting earnings on Thursday evening, we saw more than $5 trillion worth of market capitalization report in a single night and trade on those results on Friday. With that mind, let’s look at a few top stock trades for Monday.
Top Stock Trades for Monday No. 1: Alphabet (GOOG, GOOGL)
Despite beating on earnings and revenue expectations, Alphabet stock fell several percent on Friday. It overshot its 50-day moving average but is trying to hold this mark now.
If it can, see that GOOGL reclaims the $1,475 level. That was the gap-down level from February but it has remained significant in the months since.
A close below the 50-day moving average puts the 78.6% retracement in play near $1,420, followed by the 100-day and 200-day moving averages near $1,350. I would love a shot at this area, provided the market isn’t in meltdown mode.
Top Stock Trades for Monday No. 2: Facebook
On the flip side, better-than-expected earnings are driving Facebook stock higher.
The gap-up rally flung Facebook stock over the 50-day and 20-day moving averages, as well as the 123.6% extension and resistance near $245. It’s now hitting new highs as a result.
On a pullback, I would love to see the $245 area act as support. If that’s the case, it’s very healthy price action for the bulls and puts more upside in play for Facebook.
If shares continue higher, look for a test of the 138.2% extension up at $257.47. Keep in mind, if the Nasdaq Composite embarks on a notable pullback, it may be difficult for FB shares to continue higher.
Top Stock Trades for Monday No. 3: Ford (F)
Ford (NYSE:F) didn’t have a great quarter, but it was much better than expected. Still, shares are in decline as the automaker struggles.
On the plus side, it has the 50-day moving average and uptrend support nearby (blue line). That comes into play between $6.25 and $6.40. If this area fails to hold, it could put the $5.75 mark and the 100-day moving average on the table.
For now, Ford looks like it could be a buy on the dips, so long as the trend holds. If it folds, so can bulls.
On the upside, look for a test of the 200-day moving average. Above that puts the June high in play near $7.75.
Top Stock Trades for Monday No. 4: Pinterest (PINS)
Man, where did this move come from? I am quite bullish on Pinterest (NYSE:PINS) over the long term and Friday’s rally reaffirmed that outlook. Shares climbed more than 30% after reporting earnings, sending shares significantly above the 2020 high.
Measuring from the March low to the February high, shares are now in between the 123.6% and 138.2% extensions. Should the 123.6% fail as support, it could put the prior 2020 highs in play between $27.50 and $28.
After such a strong move though, I would expect buyers to step in and keep this north of $30, with the exception of a market-wide correction.
On the upside now, bulls need to see if PINS can rally up to the $35 to $36 area — the supply zone. If it can clear this resistance area, see if Pinterest stock can get to the 161.8% extension, up at $37.85.