The trend for the week continues, which is a choppy difficult environment thanks to the monthly options expiration. Now, let’s look at a few top stock trades for next week.
Top Stock Trades for Monday No. 1: S&P 500 ETF (SPY)
The S&P 500 didn’t give bulls the most encouraging candle to work with on Friday. What’s known as a bearish engulfing candle, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) opened above Thursday’s high but closed below it.
It’s also trading below the 10-day moving average.
From here, it looks like last week’s low could be in play, along with a test of the 21-day moving average and the topside of prior downtrend resistance.
That area should be good for a bounce. If it’s not, a further decline down to the $422 to $425 area is possible. There, the SPY finds the 10-week moving average, the 50-day moving average and its daily VWAP measure.
Top Stock Trades for Monday No. 2: Gold ETF (GLD)
Gold has also been getting some attention with all this inflation talk, putting the SPDR Gold Trust (NYSEARCA:GLD) on investors’ radar.
There’s a few things going on with this name. First, shares filled the gap near $171. However, it tagged the 200-day moving average and is now stalling near this zone. That said, it’s finding support on the current dip down at the 10-week and 10-day moving averages.
So, now what?
Watch Friday’s low. A break and close below the low puts a new support area in play, that being the $167.50 zone. Is that too close to current support? Maybe. But there the GLD should find a trifecta of support from the 21-day, 21-week and daily VWAP measure.
On the upside, we really need to see this name clear the 200-day moving average, then the 50-day. Above that puts $175 in play, with the gap-fill near $175.50.
Top Stock Trades for Monday No. 3: Coinbase (COIN)
Coinbase (NASDAQ:COIN) was showing promise at the start of the week. However, shares then broke down.
We’ve since seen the stock lose most of its major moving averages, as well as its daily VWAP measure. Coinbase hasn’t been trading well, but perhaps it’s trying to bottom.
We have an inside day on Friday while the overall market is lower. If Coinbase breaks the two-day low and can’t reclaim it, it puts the $208 to $213 area in play.
On the upside, though, it has to reclaim all of those major moving averages that it lost before it can gain any meaningful momentum.
Top Trades for Monday No. 4: American Airlines (AAL)
American Airlines (NASDAQ:AAL) moved lower on the day and tested down into last week’s low.
If shares break the two-week low and can’t reclaim it, this one may be heading down to its 200-day moving average and that key $18.50 area. From there, I would expect some sort of support.
If it holds, look for a rebound back up toward $20-plus. The other level to watch here? The 10-week moving average. For now, that level is holding as support. We’ll see how long that lasts.
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.