The market opened with a dip on Friday, but bulls were quick to bid it back up. That said, let’s have a look at a few top stock trades.
Top Stock Trades for Monday No. 1: Bed Bath & Beyond (BBBY)
Well, BBBY stock just keeps on going, as its short interest has fueled a strong move to the upside.
Earlier this year, shares shook off a disappointing earnings reaction after breaking out over resistance. The rise has been impressive since, as shares powered through the prior 2020 highs near $26.
Now hitting the 161.8% extension of the recent range (within a penny!), BBBY stock is backing off a bit. From here, I want to see $25 to $26 act as support. Over Friday’s high, and a run toward $40 is possible.
Top Stock Trades for Monday No. 2: Palantir (PLTR)
Palantir (NYSE:PLTR) has been flirting with a move to the upside for more than a week, tantalizing traders in the process with its false moves higher. First $27.50 rejected a big rally. Then $28.
Finally, shares powered up on Friday, bursting through the weekly-up trigger (at the previously mentioned $28 mark), and pushed through clear resistance at $29.
Now it’s contending with the December high near $31.25. A close above it puts the highs in play at $33.50. Above that, and we could see an extension up toward $40.
On the downside, though, I now want to see $29 to $30 act as support.
Top Stock Trades for Monday No. 3: FuboTV (FUBO)
FuboTV (NYSE:FUBO) gave us exactly what we were looking for this week. On Thursday, the stock cleared the two-day high at $32.50 after a low-volume pullback, ripping to the 20-day moving average in the process.
Now pushing over that mark, the stock is potentially setting up for a strong inside-and-up week next week. In plain English, this week’s range is within the prior week’s range — that’s the “inside” part — while the “and up” part requires a move over this week’s high (which will be set on Friday).
Over the prior week’s high at $40.40 puts the gap-fill in play at $42.82. Above that could put the squeeze on, potentially putting $50-plus on the table. I don’t want to be too aggressive, though.
On the downside, however, look for the 10-week and 50-day moving averages to continue holding as support. That support level earlier this week combined with the tight two-day range gave traders something to work with and it paid off big time. Now let’s see if it can continue.
Top Trades for Monday No. 4: Oracle (ORCL)
Oracle (NYSE:ORCL) caught a nice rally off the lows on Friday, bouncing from the 100-day moving average. Still, it ended lower on Friday after a downgrade from Goldman Sachs.
Next week, I want to see Oracle regain the 50-day and 10-week moving averages, as well as that key $61.86 mark. If these levels are resistance, the 100-day moving average may be back on the table, as well as the potential for more downside.
Above them will put the 21-day moving average in play, followed by a possible push to the $65 area — although that’s some high expectations for the moment.
On the downside, though, a full-on break could put the $56.50 area on deck.
On the date of publication, Bret Kenwell held a long position in BBBY.