While the stock market got off to a rough start on Monday, it’s been nothing but a nonstop rally since. The S&P 500 and Nasdaq both hit new all-time highs on Friday. With all of that in mind, let’s look at a few top stock trades going into next week.
Top Stock Trades for Monday No. 1: Snap (SNAP)
Holy smokes, look at Snap (NYSE:SNAP) go. Obviously the bulls have been pounding the table on this one, but I’m sure even many of them weren’t expecting such a rally.
Shares are bursting about 24% to new all-time highs on the day. If you remember this one, it was a great trading vehicle in the fourth quarter of 2020 and first quarter of 2021.
The stock was continually finding support at the weekly VWAP measure, but we didn’t get a chance to buy it there ahead of earnings. Instead, Snap is exploding higher after the print.
From here, I want to see shares hold the $73.50 level as support, the former all-time high. On the upside, let’s see if Snap can clear $80. Above $80, and the 161.8% extension near $89 is on the table.
Top Stock Trades for Monday No. 2: Starbucks (SBUX)
Now hitting $125, let’s see if the 161.8% extension is possible up near $130. On a dip, I’d love to see Starbucks come back to the $118 to $120 area, giving bulls another shot on the long side, or at the very least a test of the 10-day moving average.
Keep in mind this stock will report earnings next week. That could easily get us $130 or $120 (or in excess of either level). But this is more just a reminder of the power of rotation.
Top Stock Trades for Monday No. 3: Roku (ROKU)
Roku (NASDAQ:ROKU) also came to life on Friday, up more than 12%. You know there were some lotto options players that made a pretty penny (or two) as a result.
For me, Roku’s rally was a matter of “when,” not “if.” Now clearing the July high at $463, let’s see if the $450 to $460 area acts as support. If we get further follow-through, Roku could easily trade up to the prior high and resistance area near $485.
Above that puts $500-plus in play. This one won’t report earnings until August.
On the downside, a break of $450 puts the 10-day and 21-day moving averages on the table.
Top Trades for Monday No. 4: Facebook (FB)
Facebook (NASDAQ:FB) apparently took a note from Snap’s rally and also climbed to new all-time highs on the day. With earnings on tap next week, bulls are obviously optimistic.
The stock struggled with the $375 level on Friday, as shares were rejected. However, Facebook cleared the $358 resistance mark and then held that area near its session low.
So, what now? I want to continue seeing Facebook hold this level. A break below it puts the 10-day and 21-day moving averages back in play, as well as the gap-fill level near $351.50.
On the upside, let’s see if Facebook can clear $375 and hold above it. If it can, the 261.8% extension is in play near $394, followed by $400-plus.
On the date of publication, Bret Kenwell held a long position in ROKU. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.