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)
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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)
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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)
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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)
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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.
Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.
