The market has been all over the place this week. After stocks looked fatigued, we had a routine dip. As bulls were buying that dip and stocks were rotating higher, a midday jolt on Thursday rattled investors. After a night to ponder, bulls were back to buying stocks on Friday. With all of that in mind, let’s look at a few top stock trades for Monday.
Top Stock Trades for Monday No. 1: Snap (SNAP)
Snap (NYSE:SNAP) had a great post-earnings reaction in early trading, with a nice pop to the upside after solid results. But investors have sold those results. That would be less concerning if the market was performing poorly on the day.
But the market — and tech specifically — is not performing poorly. So it’s a bit discouraging to see investors sell the rally in Snap. That said, the dip didn’t do much technical damage.
I will like Snap more on a move over $60, allowing it to clear this cluster of moving averages. Above that puts stout resistance in play near $65. If we can get a move over $60, then perhaps the stock can challenge the $70 to $73 area and the all-time highs.
On the downside, however, a close below the 100-day moving average likely puts a weekly-down scenario in play. If that unfolds, $48 to $50 could be on the table.
Top Stock Trades for Monday No. 2: Intel (INTC)
While semiconductor stocks are trading well on Friday, Intel (NASDAQ:INTC) is not. However, it’s bouncing right where it needs to.
Shares tested right down to the March low and the 100-day moving average. These levels acted as support, allowing shares to bounce. Keep an eye on this level, near $57.90.
A close below this mark puts it below the 100-day moving average and gives traders a monthly-down rotation. That opens up $55 and the 200-day moving average.
On the upside, though, look for a move over $60. That’s followed by a potential gap-fill up toward $62.25.
Top Stock Trades for Monday No. 3: Honeywell (HON)
Honeywell (NYSE:HON) is enduring a modest dip on Friday, after the company reported earnings before the open.
After a nice push to new all-time highs, shares are dipping down to the 21-day moving average. With buyers stepping in, look to see if they can push this back above the 10-day moving average and over $232.
That opens the door the 161.8% extension near $235. From there, who knows, perhaps $250-plus is in play.
On the downside, however, a break of Friday’s low — also putting shares below the 21-day moving average — puts the $216 to $218 zone on the table. That puts Honeywell back into the prior breakout level, uptrend support and the 10-week and 50-day moving averages.
I would expect a bounce from this area should we get there.
Top Trades for Monday No. 4: Inovio Pharmaceuticals (INO)
Inovio Pharmaceuticals (NASDAQ:INO) puked all over the rug this morning, and a hangover on Monday is possible.
On Wednesday and Thursday, INO stock was perking up as it tried to break out of its downtrend. However, the 10-week moving average rejected it yesterday and today it plunged.
Shares burst below critical support between $8.25 and $8.75.
While it’s bouncing from Friday’s low, keep these areas in mind. That is, the prior support zone and Friday’s low.
A break of Friday’s low could put lower prices in play. A rally back to prior support needs to be reclaimed if bulls want to regain control. Look for this telling signal: Does prior support become resistance?
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.