Stocks took another hit on Friday, as selling pressure drove the markets down toward the lows of the month. With that in mind, let’s look at a few top stock trades for Monday.
Top Stock Trades for Monday No. 1: Apple (AAPL)
Thursday’s post-earnings dip looked like a great trading opportunity in Apple (NASDAQ:AAPL). Shares were pulling back after six days of rallying after a great quarterly result.
Furthermore, AAPL was dipping into the 10-day moving average and the previous resistance zone. Even though it failed, I still think it was a good risk/reward setup.
Regardless of what I think, shares are breaking below the 21-day moving average as I speak. If it continues lower, look for the stock to test down into the $124.50 to $127 area.
There it will find the 50-day moving average, solid support from December and the 61.8% retracement. If it fails, the 100-day moving average is in play.
On the upside, though, bulls need to see the stock reclaim its key short-term moving averages, then $138. Above the latter, and a run back toward its highs near $145 is possible. Let’s see if bulls step back in after a good quarterly result.
Top Stock Trades for Monday No. 2: Advanced Micro Devices (AMD)
Advanced Micro Devices (NASDAQ:AMD) also hasn’t been trading well. However, until this week, shares had done a great job of holding up above prior resistance at $87.
Breaking that mark now, it will have to find its footing here at the 21-week moving average — just as it did last quarter — or risk a further decline.
If it gathers its composure, we need to see a rebound back up through $87.50, then move back above its 10-week moving average. That will keep current resistance near $98 on the table and keep the current range intact.
A break lower from current levels could put the $81.50 to $82 area on the table, followed by the $74 mark. The latter is prior support from the previous trading range.
Top Stock Trades for Monday No. 3: Silver ETF (SLV)
Silver has been trading well over the past few days, even though it’s been somewhat sloppy this month.
Still, the 50-day moving average and uptrend support (blue line) continue to hold. As long as that’s the case, it’s hard to be too bearish.
On Friday, the iShares Silver Trust ETF (NYSEARCA:SLV) made a push toward the January highs, but ran out of steam. Near the top of the monthly range though and the SLV is setting up for a potentially strong week and month.
A move over $25.74 next week would give the ETF a weekly-up and monthly-up rotation. It doesn’t need the former, but the latter would put a potential run to $27-plus in play.
Without a rotation higher, investors will likely look to buy the dip down into support.
Top Trades for Monday No. 4: S&P 500 ETF (SPY)
In just a few sessions, the SPDR S&P 500 ETF (NYSEARCA:SPY) has already come down to the 50-day and 10-week moving averages. From here, it will be important to gauge how it responds. If bulls buy the dip, the trend remains intact.
If they do that, look to see how the SPY does with the 10-day and 21-day moving averages. Keep in mind, these marks rejected it on Thursday.
If we break Friday’s low and can’t reclaim it, we may need to test down into the $365 area, followed by the September high retest and the 100-day moving average.
On the date of publication, Bret Kenwell held a long position in AAPL.