Stocks tried to rally for the fifth-straight session, despite a rather bumpy week of events with the presidential election and the monthly jobs report. That said, let’s look at a few top stock trades for next week.
Top Stock Trades for Monday No. 1: Square (SQ)
Square (NYSE:SQ) just keeps racking up the wins for the bulls. Friday’s 13% rally is sending the stock to new all-time highs after earnings.
From here, it gets a bit more interesting. Can shares clear $200 on the upside, and hold the prior highs between $190 and $193 as support?
That is the ideal setup for bulls. If Square clears $200, investors may turn their sights up to the $231 area where the stock finds its 361.8% extension.
On the downside, though, let’s keep an eye on $190. A close below increases the odds of a potentially deeper dip, even that’s only a decline down to the 20-day or 50-day moving average.
Top Stock Trades for Monday No. 2: Uber (UBER)
Uber (NYSE:UBER) is not only rallying on its earnings results from Thursday evening, but also the vote on Proposition 22 in California.
Shares have rallied every day this week, punctuated by Friday’s 7% rally.
In any regard, shares gapped up and cleared $38 resistance on the Prop 22 vote. And on Friday, shares cleared $42 on earnings, the February high.
Now contending with its $45 IPO price, let’s see if we can get a further rotation higher from here. Over $45, and the 123.6% extension is in play at $48.50. Above $50, and the 161.8% is possible, up at $59.26.
On the downside, however, the same levels it cleared are the same ones Uber must hold. If $45 is resistance, bulls want to see $42 act as support. Below $42, and Wednesday’s low is in play at $39 — followed by prior resistance at $38.
Top Stock Trades for Monday No. 3: CVS Health (CVS)
CVS Health (NYSE:CVS) was feeling the love after earnings today. Like Uber, shares have been trading well all week. The stock ended the week nearly 16% higher, as bulls look to regain some control.
Amid the rally, CVS has reclaimed its 20-day, 50-day and 200-day moving averages. It also cleared downtrend resistance (blue line). For longer-term traders, it’s important that CVS maintains above this level going forward.
CVS is all about filling the gaps, too. The August high — which CVS struggled to penetrate on Friday — filled the gap from June. The June spike filled the gap from February.
Those are the levels we will use now. Above $67 puts the June high in play at $69.50. Above that will put the February high in play near $73.50.
On the downside, though, I don’t want to see CVS re-enter the downtrend.
Top Trades for Monday No. 4: Alteryx (AYX)
Alteryx (NYSE:AYX) has been all over the map — and not in a good way. Last quarter, shares plunged on disappointing guidance. Then in October, management revised that guidance to above the prior consensus estimates for the quarter.
While the stock gapped up, it never regained the losses from its prior disappointment despite rectifying the problem. Shares trickled lower into earnings, with the report again disappointing investors. We’re seeing a 20% haircut on the day as a result.
Below all of its major moving averages is disappointing. However, I’m surprisingly not completely turned off by AYX right here.
For starters, this earnings decline is being generated on a fraction of the volume as its prior earnings dip. That’s good. Second, AYX stock is filling the gap from its October surge.
That said, if it loses the $112 to $116 area, things don’t look so good. Thus, look to see if shares can regain last week’s low near $121. Above puts the 50-day, then 200-day moving average on the table.
On the date of publication, Bret Kenwell held a long position in AYX.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.