It’s the last trading day in a holiday-shortened week, with the S&P 500 hitting 4,000 for the first time and as tech stocks begin to gain momentum. With all of that in mind, let’s look at a few top stock trades for next week.
Top Stock Trades for Monday No. 1: AMC Entertainment (AMC)
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AMC Entertainment (NYSE:AMC) is taking in on the chin on Thursday, down 8.3% on the day. This marks AMC’s second-straight daily loss.
On a slightly deeper decline, bulls need to see the 10-week and 50-day moving averages hold as support. If they do, a bounce back up toward $10 and the 10-day moving average is possible.
Above the 21-day moving average, and perhaps AMC can make a push toward $12.50.
If the 10-week and 50-day moving averages don’t act as support, however, then $7.50 could be back in play.
Top Stock Trades for Monday No. 2: Netflix (NFLX)
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I’m going to be real honest here, tech is starting to look better. That doesn’t mean it’s out of the woods, but if we can start to garner some upside momentum, then this group could generate some serious gains.
That said, look no further than Netflix (NASDAQ:NFLX).
The stock continues to hold its 10-month moving average. Furthermore, it’s giving us an inside week, as this week’s trading range contained within the prior week’s range. Finally, it reclaimed the 10-week and 21-week moving averages.
From here, I’d love to see a weekly-up rotation over this week’s current high. That could put $550 in play, followed by a potential rally to $575.
Equally, though, a weekly-down rotation could put sub-$500 in play. Be careful with the weekly-down scenario however, as there’s a lot of support nearby.
Top Stock Trades for Monday No. 3: PlayBoy Enterprises (PLBY)
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The Plby Group (NASDAQ:PLBY) — known more as PlayBoy Enterprises — has seen some momentum in its stock price lately.
Riding a three-day winning streak, PLBY stock ripped right through the prior all-time high at $21.38 and just barely eclipsed the 261.8% extension.
On the downside, I want to see PLBY stock hold the $21.38 level as support. Below puts the 10-day moving average in play, then $16.60.
On the upside, however, a move above the current high puts a move toward $27.50 in play.
Top Trades for Monday No. 4: Alphabet (GOOG, GOOGL)
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Sticking with the big-cap tech theme, Alphabet (NASDAQ:GOOGL, NASDAQ:GOOG) continues to trade incredibly well.
Alphabet is giving bulls a great-looking setup. We have a weekly-up rotation this week, but also a monthly-up rotation over the March high after Thursday’s rally.
If it can close above this level — $2,113.74 — then it puts the all-time high in play up at $2,145. Above that opens the door to the 161.8% extension at $2,250. Keep in mind, GOOGL stock has been one of the best-performing FAANG holdings over the last few quarters. So if tech and mega-cap tech come back in favor, it wouldn’t be odd for GOOGL stock to lead the charge.
On the downside, though, a move back below $2,100 could put the 10-week moving average and $2,000 level in play.
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.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
