Stocks continued to slowly chop their way higher on Friday, in what ended up being a fairly sleepy session. Let’s look at a few top stock trades for Monday after this week’s bounce from the lows.
Top Stock Trades for Tomorrow No. 1: Peloton (PTON)
What is there to say about Peloton (NASDAQ:PTON) at this point? The thing has been absolutely red-hot and unable to slow its roll … or pedal. Or whatever. Given the run, I’m surprised the company hasn’t done a secondary offering.
In any regard, this stock ripped higher into September, but when it corrected lower with the rest of the market, it found support near the $72.50 breakout mark. The dip was short-lived and shares soon broke out again, this time over the $95 to $100 zone.
Since then, it’s been a steady trend higher. Look for a close below the 10-day moving average and uptrend support. Should we get that, the stock could revisit the 20-day moving average. Below that and $100 is on the table.
I am in no hurry to short a runaway train, whether the valuation makes sense or not.
Top Stock Trades for Tomorrow No. 2: Pfizer (PFE)
The setup in Pfizer (NYSE:PFE) is pretty straightforward, particularly now that it has gotten through the choppy stuff.
The 200-day moving average held as firm support amid the September dip, as did $35.50. However, the rise from that point wasn’t exactly smooth (although it worked).
Shares slowly chopped their way through the 20-day and 50-day moving averages, before aggressively popping off the latter on Friday, rallying over 3.5%. Now let’s see if it can clear $38.
This level was stiff resistance in April and May, but turned to temporary support this summer, as resistance shifted to $39. You guessed it: Above $38 opens the door to $39.
On the downside, a move below $36.50 puts the 200-day moving average back on the table.
Top Stock Trades for Tomorrow No. 3: Fastly (FSLY)
Wall Street’s darling has taken a heavy hit, with Fastly (NYSE:FSLY) now sporting a two-day loss of 31.8%. From the highs hit on Tuesday, shares are down 38.5%.
Wow, talk about a bad week. In any regard, the stock tried to reclaim the 50-day moving average on Thursday after that nasty gap-down. Unfortunately, it couldn’t do it, failing to close above the $91 area.
On Friday it’s slipping below the prior session’s low. Active bulls need to see FSLY reclaim Thursday’s low (at $85.10) and preferably the 50-day moving average. Above that and the post-gap high is in play at $95.35, followed by a possible test of $100.
On the downside, investors have to be aware of the potential for a washout. While the guidance wasn’t absolutely horrendous, it was disappointing, and if FSLY — trading at 44 times 2020 revenue before the fall — is no longer a Wall Street favorite, the stock may struggle for traction.
Let’s see if we get a test of that $72-to-$75 range support area.
Top Stock Trades for Tomorrow No. 4: Spartan Energy Acquisition (SPAQ)
The Nikola (NASDAQ:NKLA) news is sparking doubts that its partnership with General Motors (NYSE:GM) may crumble, and that isn’t helping Spartan Energy Acquisition (NYSE:SPAQ). Even worse though, SPAQ is breaking some key technical levels on Friday.
Shares are breaking decisively lower below the 50-day moving average and uptrend support (blue line). The 20-day moving average is also crossing below the 50-day moving average, as $15 resistance held firm.
On the plus side, the setup is pretty simple.
Shares need to regain $14 for bulls to repair the technical damage. That opens up $15. On the downside, let’s see if the dip finds any support at $12.50, the double-bottom from September.
If it doesn’t, the 200-day moving average is next.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in any of the securities mentioned in this article.