After a slippery couple of days, stocks regained their footing on Thursday and continued that momentum on Friday. With that in mind, let’s look at a few top stock trades for next week.
Top Stock Trades for Monday No. 1: Coinbase (COIN)
Coinbase (NASDAQ:COIN) started off higher on the day, but ended up falling about 2.5% after reporting earnings. This is certainly not how investors were hoping the stock’s public debut would go over the last month.
Shares rallied to the 10-day moving average and failed to reclaim it. In fact, this measure acted as resistance. Keep that in mind going forward, as this level needs to be reclaimed.
If it’s reclaimed in the semi-near future, see if the 21-day moving average can be reclaimed next. That will bring up a test of the $300 level.
On the downside, keep a close eye on the $250 mark. A few weeks ago, I said that level was a buy, as it’s the reference price that was set before Coinbase came public. However, we have already got our $50-plus bounce in the stock.
Now we watch. If it acts as support again, traders should be able to get a nice bounce. However, if it breaks it could trigger more selling pressure.
Top Stock Trades for Monday No. 2: Airbnb (ABNB)
Despite a strong day in the markets, Airbnb (NASDAQ:ABNB) is not exactly tearing it up after earnings.
In fact, we have an inside day in the stock, which is highly surprising. I bet the premium sellers weren’t banking on that calm of a reaction from the stock.
In any regard, let’s see if ABNB stock can take out its two-day high here near $142.25. Above quickly puts the $145 area in play, which has been resistance this week. Above that, and the 10-day moving average is in play. Above $150, and perhaps we see $165 and the 21-week moving average.
On the downside, however, keep an eye on this week’s low at $131.28. A daily close below this mark could put $121 to $125 in play, the post-earnings low range.
Top Stock Trades for Monday No. 3: Farfetch (FTCH)
I really like Farfetch (NYSE:FTCH) for the long term. Like most growth stocks though, Farfetch has been struggling.
Shares dipped in Thursday’s after-hours trading on earnings, but investors weren’t having it today, jamming it higher by more than 12% on Friday.
Despite the rally, the stock is struggling with the 10-day and 50-week moving averages. Notice the stock remains in a downtrend.
If it can get above these marks, it puts the 21-day and 200-day moving averages in play, as well as channel resistance. Above that, and who knows — $50 wouldn’t be out of the question.
A break of $40 on the downside could put the pre-earnings low back in play.
Top Trades for Monday No. 4: Disney (DIS)
The House of Mouse isn’t getting too many cheers after earnings, with Disney (NYSE:DIS) stock down about 2.6% on the day. However, it is hammering off the session low nicely — not that you can tell by the weekly chart above.
The stock broke below the April low earlier this week. That was a warning to bulls who are trading this name (not investing in it). The stock was also below the 10-week and 21-week moving averages.
Although good earnings could have easily rectified the situation, the setup was not all that encouraging coming into the report. Again, that doesn’t mean Disney couldn’t have popped — just look at what FTCH stock did — but that short-term traders had several reasons not be involved with this one on the long side.
In any regard, it’s bouncing even before testing into that $167 to $170 area. Let’s see if it can reclaim some of the levels we mentioned above. If they continue to act as resistance, it’s worth remaining cautious on this one.
Below $167 could put the 10-month and 200-day moving averages in play, as well as $153.
On the date of publication, Bret Kenwell held a long position in FTCH. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.