The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite all hit new all-time highs on Friday after a disappointing November jobs report. Just how much upside could be left? Well, let’s look at a few top stock trades going into next week.
Top Stock Trades for Monday No. 1: Advanced Micro Devices (AMD)
The action in Advanced Micro Devices (NASDAQ:AMD) is getting very tight.
Shares hit a new all-time high on Wednesday. Since then, the stock has pulled back a bit but continues to hover near this $94 area. On Monday, I want to see a move over the two-day high at $94.70.
If AMD stock can do that, it puts the all-time high in play at $96.37. Above that opens the door to $100. On the downside, though, see that shares hold Friday’s low and the 10-day moving average.
Below could put a retest of the breakout level in play, near $88.
Top Stock Trades for Monday No. 2: Fastly (FSLY)
At one point on Friday, Fastly (NYSE:FSLY) was up more than 17%. However, the stock has since pulled back, with shares up “just” 7% to end the day.
The action is discouraging despite the stock’s big gain. From here, I’d like to see Fastly hold up over the 50-day and 100-day moving average confluence, near $86.
Above that, and the stock still looks okay on the long side. If it can take out Friday’s high at $97.19 — which just barely began to fill that huge gap from October — perhaps it can clear $100 and begin to fill more of that gap.
Below the 50-day and 100-day moving averages, and investors will want to see range support hold near $73 to $75.
Top Stock Trades for Monday No. 3: Big Lots (BIG)
Big Lots (NYSE:BIG) went on sale on Friday, falling about 11% on earnings.
Gapping below the 50-day, shares are trading right into the 100-day moving average. If it holds as support, look for Big Lots to reclaim the 50-day.
Above, and it could fill the post-earnings gap. If it fills the gap, then $55 resistance is certainly possible.
Should the 100-day moving average fail as support, the November low is on the table at $44.84. Below $42.50, and Big Lots stock could face more selling pressure, perhaps down to the 200-day moving average.
Top Trades for Monday No. 4: AT&T (T)
Speaking of the 200-day moving average, AT&T (NYSE:T) is finally making a move above it.
Shares still continue to trade within that rising wedge pattern though. For now, investors must remain patient, although Friday’s action is encouraging.
On the upside, a break of $30 could kickstart a move to fill the gap toward $31. If filled, the June high at $32.08 is possible.
On the downside, however, look for a close below the 200-day moving average. That could put $28 to $28.50 area in play. Not only will the stock find its 50-day and 100-day moving averages in this zone, but also recent support.
Top Trades for Monday No. 5: PagerDuty (PD)
Last but not least is PagerDuty (NYSE:PD), which had itself a big day — up more than 26% on Friday.
This stock was already in a steep downtrend coming into 2020, then the coronavirus hammered the share price. Since then, though, it’s been on a huge rally. In early September, disappointing earnings results dropped it from the $37 area.
Now, positive earnings are propelling it above this level. The move sent the stock to its highest level since summer 2019.
From here, I want to see PD hold up over $37. Below, and $35 could be on the table. On the upside, though, let’s see if shares can push up to the $44 to $45 area. That was a key level that PagerDuty lost in August 2019.
Reclaiming it would put $50-plus back in play.
On the date of publication, Bret Kenwell held a long position in T, PD and FSLY.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.