As the markets continue to dawdle around all-time highs, traders are increasingly looking for stocks to squeeze for momentum. Lately, FAANG has been attracting more attention, which we’ll look at first. Don’t forget, we have the Federal Reserve meeting next week, as well as a quadruple expiration 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: Amazon (AMZN)
Amazon (NASDAQ:AMZN) has been consolidating for several quarters now. Every time it looks like it’s ready to break out, it fails and retreats. It’s not unlike its other mega-cap brethren Apple (NASDAQ:AAPL).
While Amazon has sloppily traded along the 200-day moving average, the weekly chart above brings more clarity. Notice how it continues to ride along the 50-week moving average while bouncing between $2,900 support and $3,350 resistance.
Right into resistance now, Amazon has some mixed, albeit positive signals.
With this week’s rip, shares are coming off a clean test of the 50-week moving average, while reclaiming the 10-week and 21-week moving averages. If it can break out over resistance, $3,500 to $3,550 become the next upside zone. Above that and we could have a real breakout on our hands, potentially up to the 161.8% extension near $3,950.
If resistance holds firm, look to see if the 10-week and 21-week moving averages can buoy this one.
Top Stock Trades for Monday No. 2: Facebook (FB)
Contrary to Amazon, Facebook (NASDAQ:FB) has been one of the best-performing FAANG stocks lately and has been hitting new all-time highs.
After a strong run off $300, Facebook went nine trading sessions before resetting to the 10-day moving average. There it gave us a doji candle, followed by a daily-up rip, then some follow-through to $337.
Back to the 10-day moving average already and perhaps this measure has lost its short-term boost potential. However, Facebook is also giving us an inside day, with Friday’s trading range completely contained within the prior day’s range.
If we get a daily-up off Friday’s high on Monday, I will again look for a possible move back to $337. Above $338, and the 161.8% extension near $342 is possible.
A break of Friday’s low puts the 21-day moving average in play.
Top Stock Trades for Monday No. 3: Nio (NIO)
Earlier in June, Nio went monthly-up over $41.45, then again cleared the second-quarter high at $43.22 on Friday.
Bulls want to see it continue to hold the $42 level and the 10-day moving average from here. Ideally, the prior Q2 high will actually act as support.
On the upside, investors are likely focused on $50 and wondering whether Nio can climb that high or if something will derail the stock first, given its turbulence over the last few months.
Top Trades for Monday No. 4: Bitcoin Cash (BCH-USD)
Last but not least, we have Bitcoin Cash (CCC:BCH-USD). This one is seeing more pain than Bitcoin (CCC:BTC-USD), while not enjoying as much upside during the rallies. The recent rebound from the lows was anemic and continues to be met by the 10-day moving average and downtrend resistance (blue line).
From here, it’s clinging to the 200-day moving average, but looks like it wants to roll lower. If it does, $500 is in play, followed by support between $400 and $440.
On the upside, bulls need to see this one clear the 10-day moving average as their first step. We’ll award bonus points if it can clear the 21-day moving average too. But until it stops putting in higher lows and clears some of this resistance, I would rather look for opportunities elsewhere in the crypto space.
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.