We’re coming up to a long holiday weekend and the trading in the indices makes it easy to realize that. Volumes are low, as is volatility. That said, let’s look at a few top stock trades going into next week, a four-day trading week in the U.S.
Top Stock Trades for Tuesday No. 1: Apple (AAPL)
Apple (NASDAQ:AAPL) is among the large- and mega-cap tech stocks that just can’t seem to garner much upside momentum. With its WWDC event just around the corner, perhaps this one can start to gain some momentum.
Specifically, I’m keeping an eye on the $128 to $129 area. If Apple can push above this zone next week, it will give bulls a two-times weekly-up rotation, as well as a close above the 10-week and 21-week moving averages.
Clearing this mark could open the door to the $135 to $138 area.
On the downside, the lows have been pretty tempered lately, but if we get a flush lower, I’m looking to buy a potential dip down to the $120 area. There Apple finds the 200-day, 50-week and 10-month moving averages.
That area should be support.
Top Stock Trades for Tuesday No. 2: BlackBerry (BB)
I know there are some pretty diehard bulls out there for BlackBerry (NYSE:BB). I’m not one of them necessarily, but when the short squeeze is on, it’s hard to ignore this stock.
Shares rallied right to the prior supply/demand zone near $12.15 and was harshly rejected. This area was also resistance in February and March.
If the stock can push through $12.15, a run to $14 or higher is possible. On the downside, I want to see the 10-day moving average act as support, along with $9.33. $9.33 was prior support turned resistance, so it’s important to see this level support BlackBerry.
If it doesn’t, a move lower is possible.
Top Stock Trades for Tuesday No. 3: Big Lots (BIG)
Big Lots (NYSE:BIG) is moving lower after the company reported earnings. Ahead of the report, shares were below the 10-day, 21-day and 50-day moving averages, so it wasn’t exactly setting a great tone.
The stock opened near range support at $62.37, however, investors made a deliberate decision to sell the stock at this level rather than buy it. If it can reclaim $62.50, then perhaps Big Lots can fill its post-earnings gap and test up into the 21-day and 50-day moving averages.
However, I’m liking the idea of a deeper correction.
Specifically, I’m looking at the $55 area. There the stock finds its 200-day and 10-month moving averages, as well as its prior breakout zone. If the stock drops to this area but it doesn’t act as support, perhaps we need a deeper pullback down to the prior downtrend resistance level (blue line).
Top Trades for Tuesday No. 4: Snap (SNAP)
It didn’t even come close to testing its 200-day moving average, as $48 continued to hold as support. Unlike most growth stocks, Snap didn’t even retest its lows in March (let alone break to new lows).
In recent trading, shares have reclaimed all the major moving averages as Snap pushes to multi-week highs. As good as Snap has been, it’s not out of the woods quite yet.
Instead, shares are coming up to resistance between $64 to $65. If the stock can push through this area, it puts the highs near $73.50 back in play. On a pullback, see that its cluster of moving averages acts as support. If they do, it increases the odds we get a test of resistance.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.