Friday was a quadruple expiration day in the markets, one of four throughout the year. It marks the expiration of several different assets related to futures and options. As such, it can create a pretty bumpy trading session. Despite that, let’s look at a few top stock trades for next week.
Top Stock Trades for Monday No. 1: Microsoft (MSFT)
The weekly chart gives such a clean, constructive view of Microsoft (NASDAQ:MSFT). The stock simply continues to grind higher and higher, riding its 21-week moving average.
After a recent dip to this area, we also noticed the stock found our previously noted $240 level to be support. This helped Microsoft reclaim the 10-week moving average as it now encroaches on its current all-time high of $263.19.
If it can clear that measure, it opens the door to $275 and potentially the 261.8% extension near $285.
If Microsoft can’t break out or if it does but can’t hold up over its prior highs, then a dip down to the 10-week moving average may be in order.
Top Stock Trades for Monday No. 2: Twilio (TWLO)
After a solid bounce from sub-$300, Twilio (NYSE:TWLO) stock has done well to get back above and hold $300 as support.
As it was muddling along with its 50-day and 200-day moving averages, Twilio gave bulls a strong bounce on Thursday. Shares ripped right to the 21-week moving average and downtrend resistance (blue line).
For investors, they likely have more upside on their mind. For traders, Thursday’s rally was a prime opportunity to book some profits. On a dip, I want to see the 50-day moving average hold as support.
However, on the upside, Twilio is starting to push higher — even on this mixed quad-witching Friday. If it can continue higher, $400 is on the table. Remember, this is one of the highest quality growth stocks.
Top Stock Trades for Monday No. 3: Eli Lilly (LLY)
Eli Lilly (NYSE:LLY) is presenting an interesting opportunity here. The stock had an explosive rally earlier this month, ultimately topping out near $236. Now pulling back to the 10-day moving average, short-term bulls could have a long opportunity here.
If this level fails to hold, LLY stock could be headed for $217.37. However, below $217 may be a risk-off trigger, potentially putting the $210 to $212 area on the table (the prior breakout level), as well as the 21-day moving average.
On the upside, a hold of $220 could open up the stock for a pop back to the $225 area. Above that, and $230 is in play, followed by $233.50.
Top Trades for Monday No. 4: General Electric (GE)
General Electric (NYSE:GE) continues to struggle for traction. In late-May, the stock gave the $14.40 level another test, but couldn’t break out over it. That leaves us with a double-top formation for now.
Unfortunately for bulls, GE stock failed to hold its 50-day moving average, which opened it up to lower prices.
For now, the stock is trying to hold its 21-week moving average, but more notably it’s holding the $12.75 area. This mark has been support dating back to April. If GE stock loses it, the $12.25 area could be on the table.
If $12.75 holds, look for a move back over the 21-week moving average and $13. Above that puts the 21-day and 50-day moving averages in play.
On the date of publication, Bret Kenwell held a long position in TWLO. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.