Even though there have been a flurry of headlines, it has been a quiet couple of weeks for the stock market now. With that in mind, let’s look at a few top stock trades for our upcoming holiday-shortened trading week.
Top Stock Trades for Monday No. 1: Foot Locker (FL)
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Foot Locker (NYSE:FL) was initially higher on Friday after reporting earnings, but it has since made a turn lower. For the week, though, it’s still sporting gains 5.4%.
As you can see on the weekly chart here, $40 has been resistance — even before the pandemic started. With an added layer of resistance near $42.50 via the 200-week moving average, Foot Locker has a lot to prove to bulls.
Up and over these two marks could put $46 in play. Above that, and $50 is possible.
On the downside, however, FL stock continues to respect its 10-week moving average. That remains support until proven otherwise. If it fails, $32 to $33 could be in the cards.
Top Stock Trades for Monday No. 2: Slack (WORK)
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Slack (NYSE:WORK) has been trading quite well lately, rising in six out of eight sessions.
Over the last four sessions, the stock has reclaimed its 20-day, 50-day, 100-day and 200-day moving averages. Now I want to see it at least hold the 100-day and 200-day, which would require WORK stock to stay above $28.50.
Below and it could end up getting back into “the chop,” trading without any real momentum in either direction.
On the upside, let’s see if Slack can push up to downtrend resistance (blue line). This mark has been in play since the June highs. A breakout over it would be bullish, and at the very least, put the October highs in play near $33.
Above that, and $35 to $36 could be in play.
Top Stock Trades for Monday No. 3: Workday (WDAY)
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Workday (NASDAQ:WDAY) is taking a dip on earnings, falling more than 9% on Friday.
The action isn’t great, as the stock was just starting to break out over wedge resistance ahead of earnings. Furthermore, the stock is now knifing through the 50-day moving average.
On the downside, we need to see the $200 to $206 area hold as support. There it has wedge support, range support and the 100-day moving average. Below will open the door to the 200-day moving average.
On the upside, though, I want to see WDAY stock reclaim the 50-day moving average. Above puts wedge resistance back in play, followed by the $232 level.
Top Stock Trades for Monday No. 4: Sunrun (RUN)
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Sunrun (NASDAQ:RUN) has been getting a lot of attention lately. The stock was on a strong run coming into October, but then fell into a nasty falling wedge (blue lines).
As is often the case, the stock was able to finally break to the upside. Folks, do not try to catch the falling knife if these setups. Wait for the stock to breakout of the wedge. This is not a guaranteed winner, but at least the risk point is defined by the recent low.
In any regard, the stock is fighting with the $60 to $62.50 area. Above will open up the stock to a possible rally up to $67.50. Above $70, and a retest of the highs are possible.
On the downside, however we don’t want RUN stock to lose $52.50 and the 100-day moving average. At a minimum, that will put this month’s low in play at $49.21.
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.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
