Pre-election volatility continues to increase, with FAANG stocks dragging the stock market lower. With that in mind, let’s look at a few top stock trades for next week.
Top Stock Trades for Monday No. 1: Amazon (AMZN)
How about Amazon (NASDAQ:AMZN), though?
Shares are down more than 5% on what really was a pretty good earnings report. With the move, the stock is breaking below the 100-day moving average. The next level that pops up on my chart is the $2,900 area, provided $3,000 does not provide a bounce.
At $2,900, investors will find support from July and September. A close below $2,850, though, and Amazon could be heading towards the 200-day moving average.
On the upside, bulls will want to see AMZN eventually reclaim the 100-day and 50-day moving averages. Above that puts downtrend resistance (blue line) on the table.
Top Stock Trades for Monday No. 2: Twitter (TWTR)
Twitter (NYSE:TWTR) is getting killed on Friday, down more than 20% on earnings. The stock is knifing right through channel support and the 50-day moving average.
Is this stock doomed? Maybe, but it could find support in the $39 to $40 area. That’s no guarantee of course, but it’s where Twitter will find its pre-coronavirus 2020 highs, as well as the 100-day moving average.
Are those the strongest levels of support? Not really. Especially in a heightened volatility situation. But it’s an area of interest to see how the stock responds. Below that will put the 200-day moving average on the table. On a bounce, see how Twitter handles the 50-day moving average.
Top Stock Trades for Monday No. 3: Starbucks (SBUX)
Starbucks (NASDAQ:SBUX) stock isn’t exactly breaking down, but it’s not making me want to go out and buy it with both hands either.
Shares are down on earnings, but the stock is surprisingly down less than the overall market. While Starbucks is breaking below uptrend support, it’s holding the 50-day moving average, which bears more weight in my opinion.
What I want to see now is a daily-up rotation, where Starbucks takes out and closes above the prior day’s high. That would put the $91 resistance level back in play.
However, a close below Friday’s low (at $85.63), likely puts the $81 to $82.50 area in play. Below that, and $78 is possible. On the plus side, that would fill Starbucks’ gap from August.
Top Stock Trades for Monday No. 4: Under Armour (UAA)
The setup here is simple. UAA has already filled its post-earnings gap, so we’ve got that out of the way.
My thought is, if UAA gives up all of its earnings gains and takes out this week’s low at $13.12, it’s likely heading lower. Worth noting is that the rising 50-week moving average is near this mark too.
Below likely puts $12 in play, where UAA will find prior range resistance, as well as the 50-day and 200-day moving averages.
On the upside, I don’t want to be long UAA until it reclaims the prior October high at $14.67 and the 50% retracement. Above that puts the post-earnings high in play at $15.39, followed by the 61.8% retracement at $16.30.
On the date of publication, Bret Kenwell held a long position in AAPL and GOOGL.