Stocks wavered in the first hour of trading, but found their footing heading into the weekend. Let’s see if the recent rally has legs in the coming days. Until then, though, let’s look at a few top stock trades.
Top Stock Trades for Monday No. 1: Salesforce (CRM)
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Salesforce (NYSE:CRM) continues to chop in its downtrend channel, unable to breakout on earnings. It and many of its other larger cap tech peers have been trading in a similar manner.
On Friday, the stock is undercutting its 200-day moving average and has just about filled that gap from January.
Should it go on to fill this gap and move slightly lower, we could see support come into play from its 50-week moving average. Below that puts channel support on the table near $205.
On a reclaim of the 200-day moving average, look to see if CRM stock can reclaim some of its other notable moving averages to get up to $240 and channel resistance. Above it all puts recent resistance near $250 in play.
Top Stock Trades for Monday No. 2: Etsy (ETSY)
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Etsy (NASDAQ:ETSY) ended Friday up more than 11%, as shares power back up through the 21-day and 50-day moving averages. This one is a crowd favorite, but will add a few more bulls to the wagon if it can power up through $240 resistance.
If we can break out over this mark, the 161.8% extension from the previous minor range puts $248 to $250 in play. For what it’s worth, the 161.8% extension for the current range comes into play near $270.
Should the stock fall apart, keep an eye on the $192 area. This area acted as a double-bottom recently, although a break of it would put the 21-week and 10-day moving averages in play.
Top Stock Trades for Monday No. 3: Gold ETF (GLD)
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Gold has not been trading well at all, trapped in various downtrends for months now. With Friday’s plunge, the SPDR Gold Trust ETF (NYSEARCA:GLD) is hitting its lowest level since the summer.
Earlier this month, notable support at the 50-week moving average officially failed, as sellers have overwhelmed the yellow metal while interest rates rise.
Notice the way channel resistance kept GLD stock in check for months until shares broke out in December. Then channel resistance became support. Breaking that support level now, the GLD is risking an entry back into the channel.
So here’s what we need to see: Either the GLD needs to reverse back over that key $164.50 area and above channel resistance or it likely needs to trade lower.
If it’s the former, the $168 to $170 area could be a quick upside target, with a possible test of the 21-day and 50-week moving averages in play as well. If it’s the latter, the GLD may need to revisit channel support and potentially test down into the 100-week moving average.
Top Trades for Monday No. 4: Virgin Galactic (SPCE)
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Virgin Galactic (NYSE:SPCE) is well off the lows, but is still down about 12% after reporting earnings. This one is a little tricky.
It’s bouncing nicely off the December high and working on reclaiming the 50-day moving average. A close above it and bulls will be looking for (and honestly, need) a gap-fill and retest of that $42.50 area.
That will be a big test. If it’s resistance, bears might have some momentum. If it’s reclaimed, the bulls could take it higher.
A break of Friday’s low could potentially put the 61.8% retracement and the 100-day moving average in play.
Top Trades for Monday No. 5: Airbnb (ABNB)
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Airbnb (NASDAQ:ABNB) is ripping on earnings, up 16% at the time of this writing.
Shares are doing exactly what they need to to maintain that bullish momentum. Ripping off the two-day low, Airbnb not only reclaimed its 10-day and 21-day moving averages, but also the two-times range extension (and this week’s high) at $208.50.
Bulls will want to see the stock stay above these levels now. The more marks it can hold above, the better. Meaning it’s still okay over the 10-day and 21-day moving averages, but it’s even better if it stays above $208.50.
On the upside, watch resistance near $220. Above that and the 261.8% extension is possible near $235.
On the date of publication, Bret Kenwell held a long position in CRM.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
