What do you get when you combine a quadruple witching day — the simultaneous expiration of single-stock options, single-stock futures, stock-index options and stock-index futures — with Tesla’s (NASDAQ:TSLA) inclusion to the S&P 500 and continued jawboning in D.C. heading into the weekend? A bumpy trading day, which is what we had Friday. Let’s look at some top stock trades.
Top Stock Trades for Monday No. 1: Darden Restaurants
Darden Restaurants (NYSE:DRI) is somewhat muted after reporting earnings, down about 2% on the day.
The stock continues to slowly but surely inch its way higher after a wickedly volatile Q1 and Q2. Sheesh, look at that drop!
On the upside, it’s vital that DRI takes out and closes above resistance at $125. If it can do that, it could kickstart a massive breakout rally.
On the downside, see that DRI continues to hold the 10-week moving average and uptrend support (blue line). Below $105 could put the 50-week and 26-week moving averages in play.
Top Stock Trades for Monday No. 2: CrowdStrike
CrowdStrike (NASDAQ:CRWD) broke to new highs on Friday, clearing $200 for the first time.
Take notice of this stock when it pushes through prior resistance. Each time the stock has broken over a key level, it has held that level as support going forward. This week, CRWD burst off the two-times range extension and cleared last week’s high.
For bulls that are still in this name, they can turn their attention toward $215. This level serves as the 261.8% extension for two different measures.
The first measure is from the Covid-19 low in March to the prior all-time high. The other measure is from the Q3 low to the Q3 high. This doesn’t mean CRWD will hit $215, only that it’s an upside area to keep an eye on.
As for the downside, new buyers are faced with a wide risk range for the time being, unless trading on a smaller timeframe.
Top Stock Trades for Monday No. 3: Winnebago (WGO)
Winnebago (NYSE:WGO) is chugging higher on Friday, up more than 5% at close.
The stock is flirting with a breakout over the pre-coronavirus high from February. Above this level could put the June high in play near $72.50.
If the stock can’t hold above $63, then look for WGO stock to retest the 21-day moving average. Below that could send shares into the $52 to $53 area. There it finds the 50-day and 100-day moving averages, as well as the backside of prior downtrend resistance (blue line).
Top Stock Trades for Monday No. 4: BlackBerry
Down more than 15%, BlackBerry (NYSE:BB) is clearly having the opposite reaction to its earnings report.
In early December, shares of BlackBerry exploded higher, but if readers will recall, I highlighted the peculiar action as shares endured a huge fade from the session highs. Since then, BlackBerry had wound itself into a very tight wedge ahead of earnings.
Breaking lower, it’s not a good sign for bulls. Shares are also knifing through the 20-day moving average on Friday.
From here, see how the stock handles the gap-up low at $6.92. If it breaks this area and quickly reclaims it and the 21-day moving average, bulls will have a reversal low to trade against.
If BlackBerry shares break this area and can’t reclaim it, see if $6.50 acts as support. Below puts a potential gap-fill toward $6.20 on the table, along with a possible tag of the 50-day moving average.
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.