After a late-session dip on Thursday, equity markets struggled in early Friday trading ahead of the long holiday weekend, as the U.S. stock market was closed on Monday. Let’s look at a few top stock trades ahead of next week.
Top Stock Trades for Tuesday No. 1: Nio (NIO)
Nio (NYSE:NIO) has had a busy week, starting on a high note and ending on a low note.
After Monday’s gap-up, we were looking for either an extension through the high up to the $68.80 area or a pullback to the 10-day moving average. The latter is playing out with Nio’s 7% dip on Friday.
However, it’s knifing through both the 10-day moving average and the prior all-time high at $57.20.
If bulls don’t step in early next week, the 21-day moving average and $50 mark is a likely landing zone. If they do, look for a bounce and see how it handles $60.
Top Stock Trades for Tuesday No. 2: Five9 (FIVN)
I have been waiting all week to write this stock up. I covered Five9 (NASDAQ:FIVN) recently, just in case it had some morning action, but that didn’t turn out to be the case.
That’s okay, I like Five9 on a weekly basis anyway.
Shares gave us a powerful rally in December, but bulls have seen three straight weekly declines since. Last week, FIVN caught a lift from the 10-day moving average. Now we have an inside week — where this week’s range is within the prior week’s range.
Now I’m looking for an inside-and-up rotation, where the stock takes out the prior week’s high. In the case of Five9, that will be a move up through $177.40. If we get it, it could put the highs in play near $188, as well as the 161.8% extension.
If we get an inside-and-down rotation, see if shares retest the 10-week moving average and the two-week low.
Top Stock Trades for Tuesday No. 3: Tilray (TLRY)
Cannabis stocks have been hot lately, including Tilray (NASDAQ:TLRY).
However, the stock is seeing some obvious selling pressure here, as it approaches the 2020 high and the declining 100-week moving average.
From here, I don’t want to see shares lose the $15 mark. That is admittedly a far way down, but let’s not forget Tilray bottomed at $2.43.
On the upside, a move over $23 could put $35 in play. Near that level, the stock will find the 161.8% extension and a notable prior support/resistance level.
Top Trades for Tuesday No. 4: Progyny (PGNY)
Progyny (NASDAQ:PGNY) has been a massive winner lately, climbing in nine of the past 11 weeks and in seven of the past eight.
On Friday, shares ignited over the $45 to $45.50 area, which had been acting as resistance. With it, PGNY inches closer to its 161.8% extension, near $49.40. If it can clear $50, perhaps it eventually puts the two-times range extension in play, up at $57.41.
On the downside, a move below the 10-week moving average puts the 21-week moving average in play and VWAP support.
Top Trades for Tuesday No. 5: BlackBerry (BB)
After bottoming at $6.51, I’d say they did just that. Now flying higher, the stock has done what it needed to: It held the 10-week and 100-week moving averages on the downside.
With last week’s move we were seeing a powerful rotation over the December high and the two-times range extension. However, BlackBerry stock has backed off considerably from the highs.
From here, I want to see it hold the 161.8% extension. A close below that may put the 200-week moving average back in play. Above the two-times range extension and the 261.8% extension is possible.
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.