4 Top Stock Trades for Monday: SNAP, SBUX, ROKU, FB

top stock trades - 4 Top Stock Trades for Monday: SNAP, SBUX, ROKU, FB

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)

Top stock trades for SNAP
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Source: Chart courtesy of TrendSpider

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)

Top stock trades for SBUX
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Source: Chart courtesy of TrendSpider

Speaking of “remembering,” do any readers recall the setup in Starbucks (NASDAQ:SBUX) earlier this month? It was a great rotation we saw over $113, as we then targeted the highs near $119.

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)

Top stock trades for ROKU
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Source: Chart courtesy of TrendSpider

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)

Top stock trades for FB
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Source: Chart courtesy of TrendSpider

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.

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


Article printed from InvestorPlace Media, https://investorplace.com/2021/07/4-top-stock-trades-for-monday-snap-sbux-roku-fb/.

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