Bulls want to drive the stock market higher, but they’re struggling for traction after a powerful run to new all-time highs. They’re also struggling despite record earnings from mega-capitalization tech and at a time where the Federal Reserve clearly has the financial system’s back. It’s something to think about as we turn the page to May. So, with all of that in mind, let’s look at a few top stock trades.
Top Stock Trades for Monday No. 1: Exxon Mobil (XOM)
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Exxon Mobil (NYSE:XOM) and Chevron (NYSE:CVX) both reported earnings on Friday before the open. And while they’re not completely falling apart, the duo isn’t acting with much inspiration on the day.
For its part, Exxon rode a strong five-day rally into the print. Backing off a bit now, I think XOM stock looks okay so long as it can hold up over the 50-day and 10-week moving averages.
Below those marks likely puts $54.50 in play. However, if that mark fails as support, it could put the $50 to $51 area in play, along with the 21-week moving average.
If the stock can take out this week’s high, it puts $62.50 on the table.
Top Stock Trades for Monday No. 2: Chevron (CVX)
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For Chevron, I wanted to zoom out quite a bit, looking at more than 13 years of trading via the monthly chart. As you can see above, the $100 level has been quite important to this stock.
Once it failed in 2020 — which is no surprise — it had been resistance until March. With energy having some momentum, CVX stock was able to reclaim this measure and is holding above it this month.
At the same time, it’s struggling with the 50-month moving average. From here, that leaves us in an interesting position.
On a monthly-up rotation over $107.65 and the 50-month moving average puts $112.50, then $120 in play.
However, on a monthly-down rotation below $100.14 (and a close below $100), puts the 200-month and 10-month moving averages on the table.
Top Stock Trades for Monday No. 3: Roku (ROKU)
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Roku (NASDAQ:ROKU) had an impressive rally off the March low, but failed to reclaim $400.
It then broke below the key $383 level, as well as the 21-week and 50-day moving averages. Since then, it’s been trending lower. Currently, we’re working with an inside week.
If Roku rotates below this week’s low and last week’s low at $336.62, then it could put the $300 level and the 200-day moving average in play.
On the upside, though, we want Roku to clear the 50-day moving average. But it’s clear the 21-week moving average is stiff resistance right now. Above that puts $383, then $400 in play.
Top Trades for Monday No. 4: Nio (NIO)
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Last Friday, Nio (NYSE:NIO) reclaimed the $39.75 level. However, the stock has been rejected by the 50-day moving average for five consecutive sessions. Do you get the message? This level is clear resistance!
Above the 50-day moving average puts this week’s high in play at $43.22. Above this mark would be a monthly-up rotation for those paying attention to the larger timeframes and potentially put the $49 to $50 area in play.
On the downside, however, a loss of Friday’s low puts the 200-day moving average in play.
Below the 200-day opens up Nio to the April low, near $34. If that fails as support, then the 2021 low is possible down near $32.
On the date of publication, Bret Kenwell held a long position in ROKU.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
